Flood Reinsurance Scheme Regulations - Now in force
The Regulations to establish the Flood Reinsurance Scheme (FRS) came into force on 11 November 2015. The Scheme is likely to commence business in April 2016.
The FRS is the system preferred by both the Government and the Association of British Insurers to secure available and affordable insurance against flood risk for homeowners whose properties are considered to be at high risk of flooding.
The FRS is a reinsurance scheme with an intended life span of 25 years. It will provide commercial insurers with the opportunity to purchase subsidised reinsurance against flood risk where they are not prepared to underwrite that flood risk themselves. The Scheme will offer:
- Capped premiums (set by reference to the Council Tax band of the property and rising broadly in line with inflation);
- An initial maximum excess of £250 (or, if higher, the excess which the commercial insurer chooses to apply to the policy).
- All commercial property;
- All residential property built since 1 January 2009;
- All mixed use property;
- All purpose built blocks of flats;
- Buy-to-let properties where the landlord arranges the buildings insurance;
- Most houses that have been converted into flats.
Posted on 12/05/2015 by Ortolan
