THE Government is passing a new law to help make flood insurance more affordable for high risk homes.
The Water Bill was passed by the Commons yesterday (May 7) after MPs accepted changes to legislation made by the House of Lords.
The laws will bring in a levy-funded reinsurance scheme to make insurance affordable in areas identified as having high flood risk, known as Flood Re, and also seek to bring in greater competition to the water industry.
Ministers have previously claimed this will bring bills down, but the legislation faced criticism as it progressed through the parliamentary stages.
Floods Minister Dan Rogerson told the Commons: “All contents policies would be eligible for Flood Re - whether leasehold or freehold, rented or owner-occupied - where properties are built before January 1, 2009, are in council tax bands A to G.
“Leasehold houses will also be in scope of Flood Re in terms of their buildings insurance, provided the leaseholder lives in the property and purchases the buildings insurances in their own name.”