Flood Re: Leasehold
(asked on 8th January 2024) - View Source
Question to the Department for Environment, Food and Rural Affairs:
To ask the Secretary of State for Environment, Food and Rural Affairs, whether he has made an assessment of the potential merits of including leasehold properties in the Flood:RE insurance scheme.
Answered by
Robbie Moore
Parliamentary Under-Secretary (Department for Environment, Food and Rural Affairs)
The Flood Re scheme allows for insurers to offer discounted premiums to leasehold properties consisting of three or less units where the freeholder lives in one of the units. As larger blocks, of four or more units, are classified as a commercial business, the Flood Re scheme does not apply for buildings insurance. Tenants and leaseholders can obtain contents insurance supported by Flood Re, regardless of the size of the block.
Regulation 27 of the Flood Reinsurance (Scheme Funding and Administration) Regulations 2015 sets out that Flood Re must produce a report at least every five years which reviews the scheme. How leasehold properties are included in the Scheme will be fully assessed as part of this review. Flood Re intend to publish the review in summer 2024, which the Secretary of State will consider in due course.