The insurance industry and the government came to an agreement last year over how flood-prone homes can obtain affordable insurance.

The deal, called Flood Re, ensures pay outs will come from a central pool and that annual premiums will be limited. Some 350,000 at-risk properties can benefit from the scheme, as identified by the Environment Agency. See the EA’s flood map here:

Properties other than those in band H will benefit from a cap on the flood element of insurance from 2015. Band A and B premiums will be capped at £210, increasing to £540 for band G.

These caps only affect the flood aspect of your insurance – other risks could push up the price you pay.

Will I pay more?

Premiums could go up for those on flood plains. Premiums could also rise for everyone as insurers try to recover their recent losses.

What about my excess?

While the excess for those in flood-prone areas has been increased by some insurers in recent years, the Flood Re scheme should mean insurers do not seek to increase excess amounts – because the scheme effectively covers their risk.

What about band H properties?

Flood Re does not cover band H buildings, so premiums could rise for those owners, and some buildings may become uninsurable. Home values could fall as lenders won’t provide funds to buy properties without insurance.

The big question: As a buy to let landlord, am I covered?

For many of our let property insurers, this is the most important question. Unfortunately, Flood Re does not cover buy-to-lets or holiday properties. Leasehold properties are also not covered