What Is The Impact Of “Flood Re” On Buy to Let Properties?
Some of you may have heard of the “Flood Re” scheme that was discussed by the insurance industry and the government in the summer of 2013. In simple terms, it was to be a way of ensuring that homeowners were able to purchase buildings and contents insurance at an affordable premium by capping the flood premium element of this type of insurance.
It is perhaps rather timely to discuss this matter at the moment in view of the prominence the adverse weather conditions have had in the UK. In particular high winds and level of rainfall and extremely high tides that, collectively, have caused many properties to be flooded.
“Flood Re” seems likely to encapsulate around 350,000 properties that are in flood risk areas in various parts of the UK. Property owners will be required to pay a levy of £10 with those monies going into a fund that would be used specifically to cover damage to property caused by flooding.
This sounds like an excellent scheme but the only problem is from a landlord’s point of view is that buy to let properties are not going to be included in the scheme unless there is a change of heart on the part of the decision makers. We have to say that this does seem a strange decision for those involved to make as there are no doubt many properties that are let out that are located in flood risk areas. Why should they be excluded?
Of course, the knock on effect of the increased number of claims insurance companies are being faced with due to the bad weather could result in an increase in premiums. This would not be good news for people with landlord insurance policies who should ensure that they shop around for suitable cover at an affordable premium.
In this respect, one of the most convenient ways of trying to get a good deal is to use a price comparison website such as the one that you are presently on. Getting one or more quotes only take s few minutes and can be done any time of the day of night.