Cheaper insurance for 10,000 flood-prone homes in Wales

Almost 10,000 homes in Wales have been insured under a scheme designed to cut bills for people in flood prone areas.

Flood Re was set up in 2016 as a joint initiative between the UK government and insurers.

It allows people faced with crippling excess charges to access affordable cover.

But on a visit to Cardiff, the scheme's chief executive said more needed to be done to help spread the message to some communities.

How does it work?

Before Flood Re, thousands of householders had been paying large additional premiums to make sure their homes and possessions were protected.

It is thought 350,000 homes across the UK could benefit from the new scheme - so far 9,680 policies have been taken out in Wales.

A levy is charged on all insurance companies, forming a pool of money that is then used to subsidise those who live at the highest risk of flooding.

The cost ultimately falls on ordinary policy holders, who pay on average an extra £10.50 for their home insurance.

Supporters say it has meant people who once faced crippling excess payments are now able to access affordable cover.

But critics claim money used to subsidise the scheme would be better spent on preventing flooding in the first place.

Parts of Rhiwbina in Cardiff were hit by flooding 10 times in the 20 years up to 2012.

Flood defences installed in 2013 include new walls, gates and sensors on the brook.

Mary Clarke, of the Rhiwbina Community Flood Group, who has lived by the brook for more than 50 years said she knew it "on a good day and on a bad day".

"My neighbour has lost the entire contents of her house three times, it's unbelievable," she said.

Ms Clarke said many residents had had difficulties with insurance, but after years of going up she thinks premiums are "levelling off", partly as a result of Flood Re.

But she claimed more could be done by insurance companies to take account of the new flood defences.

"You fill in a form and say what your postcode is and they say 'well you're red flagged, you're on a water course' - and we say 'yes, but we've just spent £1.3m on a flood defence scheme'."

One couple yet to benefit from Flood Re are Melfyn and Glenda Jones, whose home in Rhostryfan, Gwynedd was flooded in 2012.

They had to move out for six months while new floors and carpets were installed and their walls re-plastered.

"The trauma of it is still with us today," Mr Jones said.

"It's in the back of your mind as you watch the forecast on the news in the evening - you think 'oh it's going to be heavy rain, I best put the flood gate up'."

As a result of what happened, the couple now have to pay the first £5,000 of any future claim to do with flooding, which Mr Jones described as an "unfair penalty".

Under Flood Re their excess would be capped at £250.

Andy Bord, Flood Re's chief executive, said some insurers were more willing than others to point customers in the direction of policies backed by the scheme.

He recently met with the Welsh Government's Environment Minister Hannah Blythyn to discuss how to get "the message across" to communities at risk of flooding.

But he claimed the scheme was already having a knock on effect, with a "much larger number" of homeowners getting access to affordable insurance than just those referred to its advisors.

"The message is shop around because competitive prices are out there," he said.