Home insurance hike and Flood Re

BeckyBeeeeee

Hi, I've just received details of my home insurance renewal and it's doubled since last year from around £650 to £1300 and the reason i'm being given is it's the extra needed re the new Flood Re scheme. I'd like to find out if others are experiencing the same increases as I don't believe the price hike is related to what they claim it is. The excess which is new this year is noted as £250 for flood to both contents and building. I have an on going claim for cracks which are currently being monitored so my hunch is the hike is related to this.

mgfvvc

According to the Daily Telegraph the costs of Flood Re are "bands “A” and “B” paying up to £210 for this component, “C” paying £246, “D” £276, “E” £330, “D” £408 and “G” and “H” £540. "

BeckyBeeeeee

Thanks - I'd seen this too, but I thought that was the cost the insurers? i'd read the cost to consumers would equate to around £10.
Even if it is the cost the consumer I don't know how my insurers are justifying the doubling of my premium.

chris_m

mgfvvc wrote: »

According to the Daily Telegraph the costs of Flood Re are "bands “A” and “B” paying up to £210 for this component, “C” paying £246, “D” £276, “E” £330, “D” £408 and “G” and “H” £540. "

Those are the price caps for flood cover, not the increases.

That article says that all home insurance policyholders will pay an estimated levy of £10.50/year to cover the amounts that exceed the caps for at risk properties.

Alligator17

Ive just had this issue, my insurance went from £450 to £850. Previously there was a subsidence issue which was sorted out 30 years ago and everything has been fine since, but it took a bit of phoning round to get a reasonable price. This year its gone north in a big way and it seems to be something to do with the flood risk. We are fairly close to a canal, (it's at the end of the road) but that's never proved to be a big problem 'till now. We must have spent a week of phoning insurance brokers, interent searches/comparison sites and phoning the odd insurance company direct, still no joy. Anyone got any ideas....apart from moving!

paddyandstumpy

Just to clear up some of the advice earlier in the thread, the £10.50 is an amount which is applied to all policies (the home market has had a 3% levy applied to it to cover flood re, this is where the £10.50 has come from) plus then any cases that are ceded to flood re have an additional cost charged based on the cover (buildings, contents or combined) and the council tax band of the property.

These cede fees rannge from £78 for contents for a band A, to £1,200 for combined cover for band H (band I in Wales), this is charged by flood re and some insurers are passing this cost on to the consumer.

paddyandstumpy

Alligator17 wrote: »

Ive just had this issue, my insurance went from £450 to £850. Previously there was a subsidence issue which was sorted out 30 years ago and everything has been fine since, but it took a bit of phoning round to get a reasonable price. This year its gone north in a big way and it seems to be something to do with the flood risk. We are fairly close to a canal, (it's at the end of the road) but that's never proved to be a big problem 'till now. We must have spent a week of phoning insurance brokers, interent searches/comparison sites and phoning the odd insurance company direct, still no joy. Anyone got any ideas....apart from moving!

Specifically regarding the above, if you don't like the premium after searching, the options are to self insure (if this is an option) or to move!

You may find some insurers don't like the historic subsidence, some companies ask time limited to 10 years whereas others ask time limitless (to the best of your knowledge).

I suspect the insurer is passing the cost of flood re onto you. Not a lot you can do about that if you want flood cover!

System

paddyandstumpy wrote: »

Not a lot you can do about that if you want flood cover!

Which of course if you are correct and there is no risk you do not need.