A: When they a leaseholder looking for future protection and benefit from the DEFRA's and the insurance industry's proposed Flood Re Insurance scheme.
Flood Re is a not for profit reinsurance scheme and will pool funds and ensure that costs are spread evenly amongst insurers and householders. This will stop insurers simply avoiding this area of the market and level the playing field for all parties, spreading the cost fairly and minimising the impact on individual households.
However, because leasehold blocks are generally insured through commercial policies they are excluded from the proposed scheme. This arises since it is not the individual leaseholders who insure but landlords companies or residents' management companies and they include common areas such as car parks and corridors. It is also argued that they have collective buying power which should offset the increase, but I am not aware of any RMCs that have buying power. It is certain that those affected by flooding will be hit at the next renewal in a way that freehold homeowners will not be.
Just yesterday it was revealed that high value and new build houses that were originally excluded are to be covered after all. Well fancy that.
This is a simple injustice and if you have not already done so you should make your feelings known to DEFRA. Time is running out.
Flood Re is a not for profit reinsurance scheme and will pool funds and ensure that costs are spread evenly amongst insurers and householders. This will stop insurers simply avoiding this area of the market and level the playing field for all parties, spreading the cost fairly and minimising the impact on individual households.
However, because leasehold blocks are generally insured through commercial policies they are excluded from the proposed scheme. This arises since it is not the individual leaseholders who insure but landlords companies or residents' management companies and they include common areas such as car parks and corridors. It is also argued that they have collective buying power which should offset the increase, but I am not aware of any RMCs that have buying power. It is certain that those affected by flooding will be hit at the next renewal in a way that freehold homeowners will not be.
Just yesterday it was revealed that high value and new build houses that were originally excluded are to be covered after all. Well fancy that.
This is a simple injustice and if you have not already done so you should make your feelings known to DEFRA. Time is running out.
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