How is Flood Re funded?

Our funding comes from three sources – a Levy, a premium and an excess – all of which are paid by insurers.

Every year, we collect a Levy from insurers offering home insurance in the UK. In total that provides £180m every year for us to use for administering the Scheme and reimbursing insurers for valid claims.

Then, when we accept a flood risk, we also charge the insurer a fixed premium. That amount is tied to your home’s council tax band, not the actual flood risk. This helps to keep the overall price of the policy down. There’s a limited excess of £250 for each policy, as well.