With one month to go until the launch of flood insurance scheme Flood Re, Pete Wishart, Member of Parliament for Perth & North Perthshire, has highlighted information being provided by the Association of British Insurers (ABI) setting out their top five tips to help homeowners who live in flood risk areas get affordable flood insurance.
Speaking today (Tuesday) Mr Wishart said:
“I know that for many of my constituents who have experienced the trauma of flooding, one of the hardest things to deal with, even before everything is dried out and they are back in their homes, is the difficulty and cost of securing insurance for the future.
"One of the responses from government and the insurance industry has been the development of Flood Re - a reinsurance company. Flood Re is a mechanism that enables insurance companies to insure themselves against losses because of flooding and thus makes them more able to offer insurance to customers who have been flooded in the past.
“Unlike other reinsurance companies it is a not-for-profit fund, owned and managed by the insurance industry, and their stated aim is that it promote the availability and affordability of flood insurance to those who own and live in properties in flood risk areas.
“Government legislation was needed to set it up and it is the first scheme of its kind anywhere in the world.
“It may not be appropriate for everyone but I am more than willing to help highlight the information that the Association of British Insurers is providing to assist my constituents to decide whether this is something that might be suitable for them.
“The ABI are recommending that homeowners who think they might benefit from the Flood Re scheme do the following:
1) Work out if Flood Re is relevant to you
2) Speak to your current insurer to find out if they can offer you more options after 4 April 2016
3) Shop around the insurance market to see what is available to you
4) Don’t feel any pressure to take action immediately
5) Consider how else you can protect your home from flooding.
“The ABI have also published two new consumer guides entitled “Flood Re: What do I need to know” and “Flood Re Explained”. Both of these documents are freely available online and provide more detailed information which should help householders decide if Flood Re is a suitable option.”