In the light of the recent appalling weather conditions it has come to light that hundreds of thousands of private landlords will not be included in the government’s new flood insurance scheme.

The hardest hit areas of the South have been flooded and all coastal towns have had untold damage due to the storms and the new government scheme called Flood Re has been drawn up between the government and insurance companies.

The introduction of the scheme will allow millions of people in flood risk areas to be offered reasonably priced home insurance.

 

Initially businesses would not be given these conducive rates but worse is to come as the government is now excluding buy to let, HMO's, (houses in multiple occupation) holiday let landlords from the scheme. This decision was taken after a consultation.....possibly with Insurance Companies ? 

The reason why the sector is being excluded is the new rules state that to be eligible homeowners are only covered in properties that are their main residence.

The consultation document contains this quote:

 “For properties to be eligible for Flood Re, they would need to be insured in the name of an individual, they would need to have been allocated a Council Tax band; be used for residential purposes; have an individual premium; and be occupied by the policyholder, or their immediate family,”.

Flood Re replaces the agreement in principle with the Insurance companies that ran out in June 2013 that did cover businesses and private rented homes.

P.I.M.S.co.uk feels that although the government has announced its intention to support the buy to let market that this is a backward step and will more than likely see the introduction of extremely draconian rates by home insurers. Together with the cutback of £25 million levied on the Environment Agency with the loss of 600 jobs means that the flood and storm warnings service may be withdrawn which will mean reactive "water" fighting and of course far more damage will ensue. Insurance in flood risk areas could become prohibitive.

Flood Re replaces a ‘statement of principles’ between the government and home insurers that ran out in June 2013.

 

The old agreement covered businesses and private rented homes.