Homeowners in Britain may soon be required to obtain a Flood Performance Certificate, a new assessment that could shape how flood insurance is priced and sold.
New certificate aims to mirror energy rating system
Flood Re, the government‑backed reinsurance scheme that helps insurers offer flood coverage for high‑risk properties, announced plans to develop Flood Performance Certificates (FPCs) in partnership with insurers, lenders and other industry participants. The agency says an FPC would become a “trusted assessment of a property’s flood resilience,” working much like the Energy Performance Certificate (EPC) that currently must be displayed when a home is sold or let.
The proposed system would assign each dwelling a rating that reflects how well it can withstand flooding. The exact scale has not been disclosed, but the intent is to give owners a clear picture of their flood risk and to reward those who invest in protective measures.
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Potential discounts for resilient homes
Flood Re indicated that households that obtain an FPC or complete a comparable self‑assessment could qualify for insurance discounts. “We want to reward those who take practical steps to protect their homes,” the scheme said in a statement. The discounts would be reflected in premiums, assuming insurers pass the savings on to policy‑holders.
In addition to the certificate, the organization plans to lower the premium it charges insurers for contents‑only policies in council‑tax bands A and B from £52 to £25 starting in April 2027. The move targets lower‑income households and renters, a segment that traditionally faces higher insurance costs.
Financial pressures on the scheme
Data shows that the body has spent more on repairing homes in council‑tax bands G and H—properties that make up less than 4 % of UK homes—than on those in bands A and B, which account for about 45 % of the housing stock. Perry Thomas, chief executive, told the outlet that the scheme is increasingly subsidising higher‑value properties, while claim costs for those homes have risen faster than inflation.
Currently, the agency can only increase premiums beyond a set threshold at the rate of the consumer price index. With the highest‑value properties already hitting that limit, Thomas said they are looking at ways to impose larger premium hikes and to set caps on claims.
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Build Back Better programme receives a boost
The scheme also announced an expansion of its Build Back Better initiative, which provides up to £10,000 for flood‑related improvements during repairs. “Resilient reconstruction should become the norm after a flood,” Flood Re said, urging insurers to offer the programme more widely. The approach aims to lower future claim costs by encouraging stronger, more flood‑resistant rebuilds.
Bridget Rosewell, chair, emphasized that the reforms are intended to keep support focused on those who need it most. She noted that halving the premium for contents‑only policies in low council‑tax bands will help reduce costs for lower‑income households while maintaining overall protection.
Government backs the changes
Floods minister Emma Hardy MP highlighted the importance of affordable insurance in the wake of increasingly severe flooding events. Hardy added that the government is working with the scheme and industry stakeholders to evolve the approach, ensuring fairness and broader access to coverage.
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The organization is funded through a levy on home insurers and a fixed charge for each property that uses the scheme. The introduction of Flood Performance Certificates, if approved, would add another layer of cost‑sharing between insurers, homeowners and the public sector.
The scheme aims to lower costs.
While the details of the rating scale and rollout timeline remain under discussion, the proposed certificate could become a familiar part of the home‑buying process, much like the EPC. Homeowners may soon need to consider flood resilience alongside energy efficiency when evaluating a property’s overall performance.
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