Flood Performance Certificates could be introduced to households across Britain in the future as part of plans to give homeowners better understanding of risks.

This week, Flood Re - a government-supported reinsurance scheme aimed at helping people access affordable flood insurance for higher risk homes - said it was working with insurers, lenders and industry partners to develop FPCs. 

It said an FPC would become a 'trusted assessment of a property's flood resilience'. 

Flood Re said the FPC would work in a similar way to the Energy Performance Certificate.  

All homes now require an EPC in order to be sold or let. The EPC is a rating scheme which bands properties between A and G, with an A rating being the most energy efficient and G the least efficient.

Flood Re said an FPC would help homeowners better understand and manage their flood risk 'whilst supporting insurance pricing that recognises investment in resilience matters.' 

In a statement this week, Flood Re said it would offer discounts for households that get an FPC or complete an equivalent self-assessment. 

The idea, it said, was to 'reward those who take practical steps to protect their homes.' 

Cutting premiums for lower council tax bands 

Flood Re said it also planned to cut the premium it charges insurers for contents-only policies in council tax bands A and B from £52 to £25 from April 2027. 

It said this measure would help lower income households and renters, with the expectation that insurers will pass on the reduced cost to customers. 

Amid rising costs in three of the last four years, Flood Re said it had spent more repairing homes in council tax bands G and H, which account for less than 4 per cent of UK homes, than in repairing homes in bands A and B, which comprise 45 per cent of UK homes.

Perry Thomas, chief executive of Flood Re, told the Financial Times it was increasingly subsidising higher-value properties and that the cost of insurance claims from such homes had surged. 

At present, Flood Re can only hike premiums past a certain threshold by the consumer prices index rate of inflation. 

With premiums for the highest-value properties already hitting that threshold and the cost of claims rising by more than inflation, Thomas said that the body was looking to impose greater increases in premiums as well as the ability to impose caps on claims. 

Build Back Better boost

Flood Re also said it would boost its Build Back Better initiative, which supports households in making improvements during flood repairs. 

The scheme can provide up to £10,000 towards measures which increase resilience when homes are restored after flooding. 

Flood Re said it was encouraging wider participation from insurers in offering this approach. 

Flood Re said: 'Resilient reconstruction should become the norm following a flood, which is why the Scheme is further strengthening its Build Back Better programme.

'This will be achieved through incentivising insurers to offer it to households affected by floods, with a lower cap on claims when the scheme is not offered.' 

Bridget Rosewell, chair of Flood Re, said: 'As we look ahead, it is vital that support remains focused on those who need it most. 

'That is why we are announcing today that we will more than halve the premium we charge for contents-only policies in council tax bands A and B – helping reduce costs for lower-income households and renters, while ensuring protection remains accessible.

'At the same time, climate change means we must go further than affordability alone.

'Through measures such as Flood Performance Certificates and Build Back Better, we are helping households become more resilient before flooding happens – supporting a stronger, more sustainable flood insurance market for the future.' 

Floods minister Emma Hardy MP, said: 'Flooding is truly devastating, turning lives upside down and leaving families facing enormous uncertainty - making access to affordable insurance even more vital.'

She added: 'Under these new reforms, this government is working with Flood Re and industry to further evolve our approach. 

'By reducing premiums and making wider changes we will ensure that, in its second decade, the scheme is better targeted to support fairness and ensure more low-income households get the support they need.' 

Flood Re is funded via a tax on home insurers, as well as a fixed charge for each property that uses the scheme.