Flood Re Premium Changes Effective 1st April 2025
3 March 2025
We want to keep you informed about some important updates to the Flood Re scheme, effective from 1st April. These changes aim to ensure the continued availability and affordability of flood insurance for UK households.
Key Changes:
- Increased Liability Limit: The liability limit will rise to £3.2 billion from £1.9 billion, enhancing the scheme’s capacity to cover potential claims.
- Raised Loss Limit: The loss limit will increase to £250 million from £100 million providing greater resilience against significant flood events.
- Adjusted Annual Levy: The annual levy on the insurance industry will be adjusted from £135 million to £160 million, reflecting the evolving landscape of reinsurance and flood risk management.
Impact on Policy Premiums:
As a result of these adjustments, Flood Re will modify the premiums it charges insurers for policies ceded to the scheme. These premiums are determined based on the Council Tax band of the property.
Updated Premium Rates by Council
Tax Band (Effective 1st April 2025):
These reinsurance premiums are fixed by Flood Re and cover only the flood aspect of the premium. The total premium charged will be determined by us based on other risk factors.
We wanted to highlight these changes so you can inform your clients about potential adjustments in their policy premiums and encourage them to review their coverage options. Additionally, when quoting on the NBS system, please ensure you input the correct inception date at quote stage to obtain the accurate premium for your customers. If the inception date is adjusted, we will need to charge the difference then.
If you have any queries, please don’t hesitate to contact us on 0333 032 5000.
For more information, visit Flood Re’s official announcement.