Flood Re Halves Premiums for Lower-Value UK Homes, Cuts Payouts to Wealthy Households
Updated
Updated · Bloomberg · Jul 1
Flood Re Halves Premiums for Lower-Value UK Homes, Cuts Payouts to Wealthy Households
3 articles · Updated · Bloomberg · Jul 1
Summary
Flood Re will cut contents-only premiums for lower-value properties by more than 50% from next year, in a government-led overhaul of the UK's insurer of last resort.
Emma Hardy said the scheme had unfairly favored wealthier households, with multimillion-pound payouts increasing the burden on the system.
The reform will reduce insurance support for the richest households while shifting relief toward lower-value homes more exposed to affordability pressures.
The changes recast Flood Re's role around fairness and cost distribution as the UK faces persistent flood-risk and insurance-access challenges.