Welsh Government issues resultant proposals on flood insurance in Wales

Respondents included the Association of British Insurers, the British Red Cross, Flood Re, the National Flood Forum, One Voice Wales, the Chartered Institute of Water and Environmental Management's Rivers and Coastal Group, the South West Wales Flood Risk Management Group and the Wales Coastal Groups Forum¹. The report states that "the original consultation questions are now framed as proposals"¹.

The proposals cover measuring uninsured properties, uptake of Build Back Better (BBB) and property flood resilience (PFR), research needs, targeted engagement, financial support, support for those ineligible for Flood Re, and revisions to the Wales National Flood Strategy¹. On Flood Re, the report says that as of February 2025, 20,000 properties in Wales had been ceded to the scheme in recent months and 900 claims had been made in Wales to date¹. It also records that "only 19 properties in Wales had taken up BBB as of January 2025, out of close to 200 eligible claims", and that "currently only about 30% of properties offered BBB are taking up the measures"¹.

On pricing, the report cites quoted prices in high-flood-risk areas running 50 to 55 per cent higher than in lower-risk areas, and says a home in a high-flood-risk area with a flood claim typically sees a jump of about another 50 per cent, meaning prices 100 to 120 per cent higher than low-risk, no-claim properties¹. It puts the average cost to repair a flooded home at more than £70,000¹. The British Red Cross, citing a UK poll of 3,300 people across the four nations, reported that of households flooded in the last five years, 56 per cent had contents insurance and 51 per cent had buildings insurance, against 75 per cent and 67 per cent respectively among households that had never flooded¹. The report also cites the finding that nearly half (48 per cent) of those who have experienced flooding in their home within the last five years say they have not seen any information about flooding in their area¹.

The report sets out contextual developments since the 2024 draft, including the publication of Technical Advice Note 15 on 31/3/25, the Climate Adaptation Strategy for Wales published in October 2024, the UK Government's Floods Resilience Taskforce set up in September 2024, the Welsh Government's April 2025 response to the National Infrastructure Commission for Wales review "Building Resilience to Flooding in Wales by 2050", and the Senedd's Climate Change, Environment and Infrastructure Committee report "The response to recent storms" published in September 2025¹.

Why it matters for households

Flood cover in Wales is delivered through the UK-wide Flood Re scheme, which cedes eligible properties to insurers, and through standard home insurance policies. The report's figures indicate that households in high-flood-risk areas face quoted premiums 50 to 55 per cent above those in lower-risk areas, rising to 100 to 120 per cent higher where a flood claim has been made¹. Households that have flooded are less likely to hold cover: 56 per cent had contents insurance and 51 per cent had buildings insurance, compared with 75 per cent and 67 per cent among those never flooded¹. The National Flood Forum told the consultation that it is seeing more people from categories exempt from Flood Re seeking support, and raised concern about what happens when the scheme ends, noting most mortgages now outlast its lifetime¹. The proposals also address those outside Flood Re's eligibility criteria, including the implications for new homes and flood defence funding¹. For households dealing with a flood claim, the practical questions of cover, excess and exclusions are set out in our guides to storm, flood and escape of water claims and getting home insurance after a flood.

What happens next

The report sets out the seven resultant proposals as potential routes forward, following the consultation responses¹. No timetable for implementing them, and no Welsh Government decision on them, has been reported¹.