Flood Re: help for homeowners in flood-stricken areas

If you’re not familiar with the nuances of the insurance industry (and quite frankly, who is?), then the name Flood Re may seem odd. It’s the moniker given to a new government-backed scheme designed to help homeowners in flood-stricken areas reduce their insurance premiums.

Launched yesterday, Flood Re is the first of its kind in the world. A joint initiative between the insurance industry and the government, its title derives from the word ‘reinsurance’. It’s essentially a type of company that allows insurers to insure themselves – in this case against losses because of flooding. Put simply, the higher cost of insurance associated with flood-risk areas is passed on to Flood Re, meaning insurance companies don’t have to foot the bill, and should offer cheaper policies to those affected.

With the pictures of flood-devastated communities still fresh in people’s minds, Flood Re can’t come soon enough. Consider this new research from price comparison site, MoneySuperMarket.