Criticism Over Government Flood Subsidy Plans

One of the main things the government has announced in response to the recent flooding across the UK is the establishment of a flood subsidy fund, designed to subsidise the home insurance premiums of homeowners living in flood prone areas. Flood






The Flood Re scheme is due to begin in 2015, with the aim of “guaranteeing” to make policies affordable, even for houses which have been repeatedly flooded.

Exemptions to the Flood Plans

The insurance industry has criticised the government’s plans, stating that the large number of exemptions to the scheme mean that it will not solve the problem of being able to get affordable cover in many areas. It could also lead to lines being drawn on a map, and a house on one side of the street qualifying for a subsidy while a neighbour across the road doesn’t qualify and also gets flooded, while at the same time paying an extra £10 every year towards the flood fund.

Capped Premiums

Although there are problems with the mechanics of the scheme, the idea behind the government’s scheme is sound. Many people who live in properties which are prone to flooding face paying many thousands of pounds a year, and the government scheme will cap this at a maximum of £540 per year. The cap will also vary according to what Council Tax band a property is in.

Consumer Advice

Even if you live in a flood-prone area and are faced with expensive annual premiums, it will still be cheaper to pay the insurance than risk it and be faced with tens of thousands of pounds to put your home right after a flood, and pay for alternative accommodation while the repair work is done.

Policy Expert

If your home is your haven, you’ll want it to have the best protection. Compare quotes from our range of handpicked insurers and tailor a policy to suit you. For more information on Home Insurance from Policy Expert, speak to one of our experts on 0203 014 9300 or email

Receive £25

When you refer a friend to our home or car insurance

Refer now