Homeowners in the UK whose properties have previously been flooded are paying 121% more than the national average for home insurance, data from Compare the Market shows, even as the industry's reinsurer of last resort warns that mounting flood losses threaten long-term affordability.
The comparison site's research, based on January 2026 figures, put the average annual premium for a previously flooded home at £437, against a UK average of £198. Properties near water carry a smaller but still notable premium, averaging £210 annually.
At a regional level, Northern Ireland recorded the highest premiums for previously flooded homes at £754, followed by Greater London at £669 and the South East at £507. For homes near water, Northern Ireland again led at £557, with Greater London at £314 and the South East at £242.
Both categories have seen declines over the past 12 months. The average cost of insuring a previously flooded home fell 11% year-on-year from £495 in January 2025, while premiums for homes near water dropped 10%. Separate Compare the Market data showed the average cost of UK home insurance fell 9% over the same period.
Yet the reprieve may not last. Deloitte has forecast that home insurers could swing to a loss this year, projecting a net combined ratio of 102.1%.
Much of the current affordability picture rests on Flood Re, the joint government-industry reinsurance scheme launched in 2016 to keep home insurance accessible for high-risk households. The scheme recorded 346,200 policies ceded in 2024/25, up 20% on the prior year.
Flood Re is legislated to wind down by 2039, after which pricing will revert to fully risk-reflective levels. Its annual report earlier disclosed that reinsurance procurement had added approximately £100 million to costs for 2025/26, while its liability limit was raised to £3.2 billion.
Chair Bridget Rosewell has previously warned that "climate risk is growing, reinsurance conditions are tighter, and affordability is under threat."
The pressure extends beyond reinsurance. Flood losses continue to strain public defences, with a House of Commons Public Accounts Committee report finding that deterioration had left around 203,000 properties without reliable protection. The UK government has committed £2.65 billion to better protect 52,000 properties by March 2026.
Approximately 6.3 million homes and businesses in England face flood risk, a figure expected to reach 8 million by 2050. Scotland has an estimated 320,000 residential properties at medium risk, projected to climb to 522,000 by 2100. Northern Ireland and Wales face exposure of roughly 85,500 and 300,000 properties respectively.
Amy Rootham, home insurance expert at Compare the Market, said the research highlights the cost burden on flood-exposed homeowners.
With millions already at risk and flood losses set to grow, she urged policyholders to compare options and take steps to build resilience, saying "it's becoming increasingly important for homeowners to understand their property's flood risk and consider taking steps to improve resilience where possible."
