A British Insurance Brokers’ Association (BIBA) survey reveals concerns for properties excluded from the UK’s planned flood pool – particularly small businesses.

Flood Re aims to make cover widely affordable and available by subsidising insurance on high-risk homes.

BIBA has previously raised doubts over the exclusion of SMEs, arguing they will find it hard to obtain affordable cover.

The new survey of brokers and insurance customers appears to confirm these fears.

While the survey results have not been published, BIBA has summarised the findings before a meeting with Floods Minister Dan Rogerson today.

It says brokers and customers have concerns about the current market, despite the Statement of Principles voluntary agreement on coverage, which does include SMEs.

They say it is increasingly difficult to buy flood cover, and it will be harder after the Statement of Principles is replaced by Flood Re in July next year.

Some customers told the survey that if the cost of flood insurance goes up they will need to drop it or even move their home or business.

BIBA “fully supports” Flood Re despite these concerns, a spokesman told insuranceNEWS.com.au.

“This survey responds to the Government’s request for information on the excluded classes and shows there is an issue with affordability and availability of flood insurance for properties not covered by Flood Re, particularly small businesses.

“We are holding constructive discussions with the minister, the Association of British Insurers and with insurers.

“We are not calling for SMEs to have to be included in the proposed Flood Re model, but are aiming to find a positive way forward for our members and their customers to provide access to affordable insurance in the future.”

In response to a written question from MP Laurence Robertson, Mr Rogerson says the BIBA survey is being “considered with interest”.

He says the Department for Environment, Food and Rural Affairs (Defra) has commissioned its own research to monitor the flood insurance market.

“This will include the market for domestic insurance, for which Flood Re has been designed, and the market for commercial flood insurance, for which Flood Re was not designed.

“I am planning to discuss this issue of commercial flood insurance with BIBA and representative organisations from the property sector.”

The Government will consult with the insurance industry on Flood Re throughout the northern summer, delegates at a forum hosted by UK broker Lark were told.

The forum, attended by Defra representatives, was told the insurance industry would be able to contribute to the publication of detailed secondary legislation after the Government set out its initial proposals in the Water Act 2014.