We are delighted to announce that Flood Re is now available through Confidas.
The first thing to note is that there the process for gaining Flood Re cover is the same as for current enquiries, simply present the risk as you normally do.
• The immediate benefit is that Flood Re will allow us to quote a further 1 in 10 cases and give you more opportunities to win business.
• There will be certain triggers where we will automatically cede to Flood Re, but a further benefit of this launch is that we have also developed a rating system to price the flood risk element ourselves where these triggers are not activated.
• In the circumstances where our own Flood premium returns a lower price than the Flood Receded premium, we will offer these exclusive terms instead.
This means your clients will always get our best possible terms.
Change of Address & Additional Properties
• We will also be able to continue to cover more clients who change address or add properties (excluding let properties – see below) to their portfolio.
• At launch, we will require a new policy for risks that are ceded, owing to the new rating structure that has had to be developed to allow Flood Re interaction.
• For the interim this will mean a small number of high flood risk portfolios will need to be cancelled and replaced with a new 12 month policy if the new property must be ceded in order for us to continue to cover our mutual client.
• We are continuing to develop the system to cope with the high flood risk properties on a mid-term adjustment basis and eventually all risks will be migrated on to the new rating system when this is available.
• Flood Re require a minimum excess of £250.
• Where there is a higher policy excess (usually on Lux) it will be this excess that will be used and this will be clearly shown on the policy schedule.
• Should the excess waiver clause on our own policy mean the policy excess is waived, the Flood Re excess will then apply.
• We will never charge two excesses, only the higher of the two excesses applicable.
Flood risks that will continue to be declined
As you will know, Flood Re will not accept ceding on a very limited number of properties. In line with this, we will not be offering terms in high flood risk areas for:
• Let properties
• Properties built in 2009 onwards.
This is an exciting time for us all, particularly as the new rating approach will give an alternative, exclusive, pricing structure to you and your clients who may have previously struggled to find cost effective solutions to their household insurances.