Flood Re and what buyers will ask about
Homes built on or after 1 January 2009 cannot use Flood Re, so new build insurance rests on the open market. What to hand over at completion and what not to promise.
Flood Re is a reinsurance scheme that lets insurers offer affordable household flood cover in areas where the risk would otherwise price people out, and it excludes homes built on or after 1 January 2009. That date is the fact a buyer needs from you, because it means a new house in a flood risk area cannot be placed into the scheme however carefully it was designed. Flood insurance for new build therefore rests on the open market, and the evidence you hand over at completion is what the market will price against.
Developers who understand this sell faster. The ones who promise insurability in a brochure end up answering complaints.
Why insurance comes up at the point of sale
A conveyancer runs an environmental search, the search reports a flood risk, and the buyer's lender asks whether buildings insurance is available and at what cost. That conversation happens weeks before completion and it is the point at which a sale stalls.
Three questions get asked, in this order. Is the property in a flood risk area. Can insurance be obtained. Has anything been built into the house that reduces the risk of damage.
You can answer all three with documents you already have, provided someone has kept them. The flood risk assessment, the approved finished floor levels, the drainage strategy and any resilience specification are the evidence pack. Assembling that after the first enquiry wastes a fortnight.
The scheme's purpose and its eligibility limits
Flood Re was established under the Water Act 2014 and began operating in 2016 as a reinsurance arrangement between the scheme and participating insurers. The insurer still sells the policy and handles the claim; the scheme takes on the flood element of the risk at a capped premium.
It is designed as a transitional measure running to the late 2030s, with the intention that risk-reflective pricing takes over as flood risk management improves. So a buyer asking about Flood Re today is asking about something that has an end date, and that is worth saying plainly rather than implying permanence.
Eligibility is set by the scheme and should be checked against its current criteria. The limits that matter to a developer are the property build date and the type of policy: the scheme covers household buildings and contents insurance for residential property, with specific rules for leasehold arrangements, and it does not cover commercial policies.
Why new build is treated differently
The exclusion of homes built from 2009 onwards is deliberate policy rather than an administrative quirk. National flood risk policy expects new development to be safe for its lifetime, with the sequential test applied first and the exception test where it is engaged. Subsidising insurance for newly built homes in flood risk areas would work against that.
The practical consequence runs in one direction only. A buyer of a 1930s house in Flood Zone 3 can usually find affordable cover through a participating insurer. A buyer of a house you completed last year on the same street cannot use the scheme, and will be quoted on the property's own characteristics.
That makes the design evidence commercially valuable rather than merely regulatory. A Flood Risk Assessment showing finished floor levels set above the modelled level for the design event, with an allowance for climate change, is the document an underwriter wants to see.
What resilience measures do for premiums
Insurers price on the probability of a claim and the likely cost of one. Resilience measures reduce the second, and some reduce the first.
| Measure | Effect an underwriter can price |
|---|---|
| Finished floor levels raised above the modelled flood level | Reduces the probability of internal flooding, the strongest single factor |
| Solid floors with closed cell insulation and tiled finishes | Lower reinstatement cost and faster drying |
| Services and consumer unit raised above the design level | Avoids the most disruptive element of a reinstatement |
| Water resistant wall construction to a stated height | Reduces drying time and replacement of plasterboard |
| Non-return valves on drainage | Addresses sewer surcharge, a common source of internal water |
| Flood barriers to openings with a tested specification | Helps where correctly specified, though it depends on occupant action |
The scheme's own repair initiative, which allows participating insurers to fund resilient reinstatement up to a set amount after a flood, applies to eligible properties rather than to new build. Check the current terms before describing it to anyone.
Nothing here lets you promise a premium. Underwriting is individual, insurers differ in appetite, and the quotation depends on the postcode data the insurer holds as much as on the house. Our note on property level resilience measures covers the specification side.
Evidence buyers and lenders look for
Put a pack together at practical completion and hand it over with the keys.
- The flood risk assessment as approved, with the modelled levels and the climate change allowance stated.
- A plan and schedule of finished floor levels as built, surveyed rather than taken from the drawings.
- The drainage strategy and the discharge consent or connection approval.
- A schedule of resilience measures installed, with product references and any test certification.
- Any flood warning and evacuation arrangement secured by condition, with the route plan.
- Confirmation of the registration for flood warnings covering the property.
- The planning permission and the decision notice, so a lender can see the conditions.
Lenders rarely read all of it. They do want to see that it exists, and a buyer whose broker has it can shop the risk around rather than accept the first quotation.
Where planning conditions help
Conditions are often treated as an obstacle. On a flood risk site they are the evidence that the design was tested.
A condition fixing finished floor levels gives a surveyed datum an underwriter can rely on. A condition requiring resilience measures in accordance with an approved schedule proves they are present. A condition requiring a flood warning and evacuation plan shows an occupant has a route and a trigger. A condition requiring the drainage system to be maintained under a named management arrangement answers the surface water question.
Ask for the conditions to be worded so that compliance can be demonstrated with a document. A condition requiring measures to be agreed in writing, with nothing ever submitted, is worse than no condition at all. And where surface water rather than river flooding is the issue, be careful how the risk is described, as our note on reading the surface water flood risk map explains.
Where the site is in Flood Zone 2 or 3, the Sequential Test work also forms part of the story, because it shows the site was assessed against alternatives rather than chosen in spite of the risk.
Honest limits of what a developer can promise
Three statements are safe. The site has been assessed against national flood risk policy. The house has been designed and built to specified levels with specified measures. Here is the evidence.
Three statements are not. Insurance will be available. The premium will be reasonable. The property is covered by Flood Re.
Say the first three and hand over the pack. Buyers accept a straight answer about an end date and an exclusion far better than they accept discovering it from a broker a week before exchange.
Enter your postcode on PlanScope to see which reports a site in a flood risk area is likely to need.
This is general guidance, not legal advice. Check the position with your local planning authority or a qualified professional before relying on it. PlanScope provides AI-assisted draft reports for planning applications. Reports should be reviewed before submission. We do not guarantee planning approval.
Frequently asked questions
What is Flood Re?
A reinsurance scheme established under the Water Act 2014 and operating since 2016. A participating insurer still sells the policy and handles any claim, while the scheme takes on the flood element of the risk at a capped premium, which is what keeps household cover affordable in higher risk areas.
Why are new homes excluded?
Because national flood risk policy expects new development to be safe for its lifetime, with the sequential test applied first. Subsidising insurance for homes newly built in flood risk areas would work against that, so properties built on or after 1 January 2009 fall outside the scheme's eligibility.
Does the exclusion mean a new house is uninsurable?
No. It means cover is priced on the open market rather than through the scheme. Underwriters assess the individual property, so surveyed finished floor levels above the modelled flood level, raised services and a documented resilience specification all matter to the quotation a broker can obtain.
Can a developer promise that insurance will be available?
No, and it should not be implied in sales material. Underwriting is individual, insurer appetite varies and the quotation depends partly on postcode level data the insurer holds. What a developer can do is state how the site was assessed, what was built, and hand over the evidence.
Is Flood Re permanent?
No. It was designed as a transitional arrangement running to the late 2030s, with the intention that risk-reflective pricing takes over as flood risk management improves. A buyer asking about the scheme should be told plainly that it has an end date rather than left to assume permanence.
What should be in the handover pack?
The approved flood risk assessment with modelled levels and climate change allowance, a surveyed schedule of as-built finished floor levels, the drainage strategy and connection approval, a schedule of resilience measures with product references, any flood warning and evacuation plan, and the decision notice with its conditions.
Sources and further reading
This article is general guidance about the planning system in England and, where stated, the rest of the UK. It is not legal or professional advice. Check your local planning authority’s validation requirements and take professional advice for your specific site.