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by Trevor Loveday

Household flood insurance is affordable, poll shows

Government research into the affordability and availability of flood insurance for households and small companies (small agricultural businesses) at a raised risk of flooding has found that most households agree that their insurance premiums are affordable.


But while it found that most households have both buildings and contents insurance the study revealed that “a significantly lower proportion” of households in the rental sector have contents insurance.

It found that only 13% of all small businesses had buildings insurance with business property insurance held by around half.


While 23% of all SMEs hold business interruption insurance less than half of those with business property or business interruption cover reported that it included flood cover. The research also found that small agricultural businesses were much more likely than their non-agricultural counterparts to have all types of insurance.


The research aimed to:

  • analyse trends in affordability and availability of flood insurance following the introduction of Flood Re – a joint scheme between the government and insurers;

  • assess the availability of contents and buildings flood insurance policies including the number of policies with flood exclusions and to assess how a policies are purchased;

  • provide an update to the baseline studies of the affordability and availability of flood insurance premiums and excesses for households and small businesses; and

  • identify barriers and enablers to the take-up of flood insurance for specific groups.

The research formed part of Defra’s response to the Blanc review and explores perceptions of flood insurance, including its affordability and availability among the target household and business customers.

The project started in 2021 and wa



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