UK flood insurance risks face scrutiny amid new certificate pilot

The UK government has announced plans to pilot Flood Performance Certificates, which will provide homeowners with information regarding a property’s flood exposure and resistance measures. While the initiative aims to increase resilience, industry representatives from The Home Insurer have called for the Flood Re scheme to be extended to the private rented sector to protect landlords and tenants.

Concerns have been raised regarding the long-term viability of the Flood Re scheme, a government and industry-backed initiative designed to maintain affordable insurance in high-risk areas. Insiders warn that the current fund may be insufficient to cover losses during major flood events, which are expected to increase due to climate change.

Some insurers have already begun withdrawing coverage for specific high-risk assets, such as heritage buildings in Worcestershire. Experts warn that if multiple high-cost climate events occur in rapid succession, the financial burden may exceed the capacity of both insurers and governments to manage without significant economic consequences.