The money for the Flood Re fund is raised in three ways. The first is a levy that every home insurer must pay each year. This provides the fund with £135 million which is used for managing the scheme and reimbursing insurers for valid claims.
When Flood Re accepts a flood-risk home, the insurer is also charged a fixed premium which is based on the property’s council tax band. And finally, there’s an excess of £250 that the policyholder must pay towards the cost of the claim.