What is Flood Re? A Guide for Landlords and Commercial Property Owners

If you own a rental or commercial property in an area at risk of flooding, you may have come across the term Flood Re when looking for insurance. But what exactly is Flood Re, and does it apply to landlords and commercial property owners?

Flood Re was created to make flood insurance more affordable and accessible for eligible residential properties at increased flood risk. However, it isn’t a universal flood insurance scheme, and many commercial properties, blocks of flats, mixed-use buildings, and other property investments may not meet its eligibility criteria.

For landlords and commercial property owners, understanding where Flood Re applies, and, perhaps more importantly, where it doesn’t, can be particularly useful when arranging insurance.

What is Flood Re?

Flood Re is a joint initiative between the UK Government and the insurance industry designed to help households at increased flood risk obtain affordable insurance. Homeowners don’t buy insurance directly from Flood Re; they arrange their buildings and contents insurance through an insurer as usual.

Where an eligible property presents a higher flood risk, the insurer can choose to pass the flood element of the policy to Flood Re. The customer still deals with their insurer, including if they need to make a claim.

In simple terms, Flood Re operates behind the scenes to help insurers offer flood cover to eligible residential properties that might otherwise be expensive or difficult to insure.

Is Flood Re available to landlords?

This is where it gets more complicated. Being a landlord doesn’t automatically determine whether a property can or cannot benefit from Flood Re. Eligibility depends on the property and how it is insured.

Some individual residential buy-to-let properties may meet the qualifying criteria. However, properties insured as commercial risks, larger blocks of flats, mixed-use buildings and certain portfolio arrangements may sit outside the scheme. This distinction is important.

If you own a single residential property that you rent to a tenant, your insurance requirements can be very different from those of a freeholder insuring an entire block or a property company insuring a portfolio of buildings.

Therefore, landlords should not assume that Flood Re automatically applies simply because people live in the property.

Does Flood Re cover commercial properties?

Flood Re was designed primarily for eligible residential properties, not commercial premises.

A shop, office, warehouse, factory or other commercial building would therefore normally require flood protection through the commercial insurance market.

This becomes particularly important if the property is in an area with increased flood risk, has flooded before, or an existing insurer has restricted or removed flood cover.

Commercial flood insurance may still be available in these circumstances, but finding suitable cover can require a more specialist approach.

Does Flood Re cover blocks of flats?

Blocks of flats are another area where the distinction between residential occupation and commercial insurance becomes important.

Although the individual flats are homes, a freeholder, management company, or other organisation may insure the building under a single buildings insurance policy.

Flood Re states that blocks containing more than three residential flats would not normally fulfil its eligibility requirements for buildings or combined cover.

For landlords, freeholders and managing agents responsible for larger blocks, appropriate flood protection may therefore need to be arranged through the commercial insurance market instead.

And the potential exposure can be considerable.

Flooding doesn’t necessarily need to enter an individual flat to cause substantial damage. Water entering communal areas, underground car parks, plant rooms or basements can affect electrical systems, lifts, heating equipment and other essential services used throughout the building.

What about flood risk for mixed-use properties?

Mixed-use buildings are particularly common in towns and cities – a shop, restaurant or office at street level with residential flats above, for example.

These properties can present a more complex insurance risk because they combine commercial and residential use.

Depending on its ownership, occupation and insurance arrangements, a mixed-use property may not meet Flood Re’s eligibility requirements.

That means landlords and commercial property owners shouldn’t assume the residential element automatically brings the entire property within Flood Re.

Instead, the building may require a commercial property insurance policy that covers both its residential and commercial elements, including flood risk.

Why does Flood Re matter to landlords and property owners?

For landlords and commercial property owners, understanding the scheme helps explain why two apparently similar properties can have very different flood insurance options.

An owner-occupied residential house at increased flood risk may benefit from Flood Re. At the same time, a nearby commercial building, mixed-use development, or large block of flats may need to obtain flood protection entirely through the commercial insurance market.

That’s particularly relevant when purchasing a property.

Before completing on a commercial investment or rental property, it’s worth establishing whether appropriate flood insurance is available and what it will cost. Greenfield Insurance are experts in this field. Discovering after completion that flood cover is restricted, subject to a substantial excess or difficult to obtain could have significant financial consequences.

What happens if my property doesn’t qualify for Flood Re?

Falling outside Flood Re doesn’t mean a property is automatically uninsurable.

Commercial insurers assess flood risk differently and use different criteria for different property types.

An insurer may consider factors such as:

• The property’s exact location.
• The source of the flood risk.
• Previous flooding and insurance claims.
• The construction and use of the building.
• Flood resilience measures already installed.
• The value of the property and contents.
• The potential for loss of rental income or business interruption.

This is one reason specialist advice can be valuable. Rather than relying solely on a postcode or an automated quotation system, Greenfield Insurance can provide a panel of insurers with more detailed information about the individual property and approach insurers willing to consider more complex flood risks.

What if my landlord or commercial flood insurance has been declined?

A declined quotation or difficult renewal can be worrying, particularly if your existing insurer has suddenly increased the flood excess or removed flood cover altogether.

However, one insurer declining a risk doesn’t necessarily mean every insurer will reach the same decision.

Different insurers use different underwriting criteria and may have different criteria for flood-exposed properties.

If you’ve been declined, provide as much information as possible about the building, including previous claims, the cause and depth of any historic flooding, and improvements made since.

Measures such as flood barriers, non-return valves, improved drainage or relocating vulnerable electrical equipment can all help an insurer better understand the individual risk.

What should landlords look for in flood insurance?

Obtaining flood cover is only part of the equation. It’s equally important to understand exactly what the policy protects.

For a landlord or commercial property owner, this could include:

• Buildings and structural damage.
• Fixtures and fittings.
• Landlord-owned contents.
• Plant and machinery.
• Communal areas.
• Clean-up and debris removal.
• Loss of rental income.
• Business interruption where appropriate.

Pay particular attention to the flood excess and any specific exclusions or conditions.

For landlords, loss-of-rent cover can be especially important. A serious flood could leave a property uninhabitable for an extended period, potentially stopping rental income while mortgage payments and other property costs continue.

Flood Re isn’t the only option.

For landlords and commercial property owners, the key point is that being outside Flood Re doesn’t mean you’ve reached the end of the road.

The commercial insurance market includes insurers willing to consider properties with more complicated flood exposures, including buildings in higher-risk locations and properties that may have struggled to obtain flood cover elsewhere.

Alternative approaches, including specialist and parametric flood insurance, may also suit certain commercial risks.

The right solution depends on the property itself, not just its postcode.

Need help with flood insurance for a landlord or commercial property?

If you’re unsure whether your property qualifies for Flood Re, have been declined flood insurance, or own a building outside the scheme, specialist advice can help you understand your alternatives.

Greenfield Insurance works with landlords, freeholders, managing agents, and commercial property owners to explore suitable insurance options, including properties that can be harder to insure through conventional channels.

Whether you own a single rental property, a block of flats, a mixed-use development or a portfolio of commercial properties, speak to Greenfield Insurance to discuss the flood cover available for your property.

Frequently asked questions about Flood Re.

What is Flood Re and how does it help with affordable flood insurance?

Flood Re is a joint initiative between the UK Government and the insurance industry designed to help make affordable flood insurance available to eligible homes at higher risk of flooding. It operates as a reinsurance scheme, which means homeowners and landlords don’t buy cover directly from Flood Re. Instead, participating insurance companies can pass the flood element of an eligible policy to the scheme.

Is Flood Re the same as home insurance?

No. Flood Re isn’t a home insurance policy, and you don’t buy cover from Flood Re directly. You arrange insurance with an insurer in the normal way and, if the property is eligible, the insurer may choose to reinsure the flood element through Flood Re. Your insurer remains responsible for the policy and any flood claims you make.

Does Flood Re cover landlords and buy-to-let properties?

Some residential buy-to-let properties may qualify for Flood Re if they meet the scheme’s eligibility requirements. However, not every landlord property is eligible. Commercially insured properties, larger blocks of flats and certain other property arrangements may sit outside the scheme.

How can I check if my property is eligible for Flood Re?

Flood Re provides an online tool to help you determine whether a property meets the scheme’s eligibility criteria. However, final eligibility can depend on the property and how its insurance is arranged. Landlords who are unsure should speak to their brokerbefore assuming the scheme covers a property.

Does Flood Re cover commercial property?

Flood Re is primarily intended for eligible residential properties, not commercial buildings. Shops, offices, warehouses, factories and other commercial premises generally need flood protection through a commercial property insurance policy instead.

Does Flood Re cover blocks of flats?

Not necessarily. Larger blocks can fall outside Flood Re’s eligibility criteria for buildings insurance. This is particularly important for freeholders, managing agents and landlords responsible for insuring an entire building, who may need to arrange flood cover through the commercial insurance market.

Can I get flood insurance for a high-risk property?

Potentially, yes. Being considered high risk or falling outside Flood Re doesn’t automatically mean you can’t get flood insurance. Specialist insurers may consider properties that have previously flooded, are in recognised flood-risk areas, or have struggled to get suitable cover elsewhere.

Does Flood Re cover surface water flooding?

Flood risk isn’t limited to rivers. Surface water flooding occurs when heavy rainfall overwhelms local drainage systems, and water accumulates before it can drain away. Where a property and policy qualify for Flood Re, the scheme can support the flood element of the insurance; the precise cover remains subject to the underlying policy terms.

Will flood doors or other flood protection help me obtain insurance?

Measures such as flood doors, removable barriers, non-return valves, and moving vulnerable electrical equipment above likely flood levels can reduce flood impacts. They don’t guarantee acceptance or lower premiums, but insurers may consider flood resilience measures when assessing a property.

Why have my flood insurance premiums increased?

Insurance premiums can change as insurers reassess a property’s exposure using flood mapping, claims history and increasingly detailed risk modelling. An increased premium or flood excess doesn’t necessarily mean every insurer will assess the property the same way, so it can be useful to explore the wider market.

Can I get insurance after making previous flood claims?

Previous flood claims don’t necessarily make a landlord or commercial property uninsurable. Insurers may want to know when the flooding occurred, what caused it, the claim cost, and what you’ve done since to reduce the likelihood or severity of another flood.

What should I do if my insurer removes flood cover?

If flood cover is removed at renewal, don’t assume that another insurer will reach the same decision. Gather your policy documents, flood claims history and details of any flood-resilience work undertaken. A member of the Greenfield Insurance team can then approach insurers that may have a greater appetite for the individual risk.

What happens if my property isn’t eligible for Flood Re?

Flood Re isn’t the only route to obtaining flood insurance. Landlords, freeholders, and commercial property owners whose buildings fall outside the scheme may still get suitable protection through specialist commercial insurers.