The UK Government’s flood reinsurance pool, Flood Re, will go live in April next year after “extensive testing”.

“Building Flood Re’s systems and infrastructure is on track and will be established in the [British] summer, as previously indicated,” CEO Brendan McCafferty said.

“However, being ready to launch for consumers requires extensive testing that needs to be done with 300-400 insurers.”

Mr McCafferty says it was “initially presumed” the scheme, which guarantees affordable cover for households in flood-prone areas, would launch this UK summer, but the complex system still needs to be thoroughly tested.

The Department for Environment, Food & Rural Affairs says the operational testing phase is on track to be established by next month.

Flood Re – a collaboration between the insurance industry and the Government – will cap home cover in flood-prone areas.

It will cover 500,000 properties, including top-end houses.

Subsidised cover will be funded through a levy of about £10.50 ($20.96) on all UK household premiums. Insurers will “pass on” the risk of flood to a collective fund, where money from all consumers using Flood Re is held. This pool will be used to pay claims after flooding.

Homes built since 2009 and commercial properties, including leasehold properties, will not be covered. The scheme has been criticised for these exclusions, but the Association of British Insurers says the 2009 limit discourages building in high-risk areas.