Flood Re is a joint enterprise between the UK Government and insurers. It’s objective is to make the flood element of cover part of your home insurance policy more affordable to those who own and live in a properties in a high risk flood area and insurers don’t just turn the customers away due to the risk of flood claims.
Customers will still purchase their home insurance policy through the insurer or broker in the usual way and will not directly deal with Flood Re. When the cost of the flood risk part of their policy climbs above a certain level, it may make sense for the insurer to place that part of the policy with Flood Re, which is known as ceding.
In the case of a customer making a claim because of flood, they will have their claim managed and repair works completed by their insurer in the usual way, but that insurer will then be able to recover those costs from Flood Re scheme.
The final amount payable is for the overall risk and depends on many different factors, including but not limited to; occupation, numbers of bathrooms, age of property, condition of property, post code and likelihood of a claim being made because of fire, theft, subsidence and not just flooding.
If your insurer does cede your policy to Flood Re they may apply a specific flood excess on your policy.
You can find a list of insurers on the Flood Re scheme at https://www.floodre.co.uk/can-flood-re-help-me/.