HUNDREDS of Cumbrian landlords could be left with uninsurable properties because they are excluded from a new scheme.

The Flood Re initiative – run jointly by the Government and the insurance industry – is designed to ensure that people living in areas at a high risk of flooding can get insurance.

Experts say it will help around 350,000 home owners in the UK but it is not available to landlords, small businesses or charities.

Floods minister Rory Stewart – also MP for Penrith and The Border – said it would be unfair to extend the scheme because ultimately that would drive up everybody’s premiums.

But there are fears that some flood-hit homes which were rented out may be left to rot if a solution cannot be found.

Ruth Rowntree, a Cumbrian spokeswoman for the National Landlords Association, said: “The new Flood Re scheme offers no protection at all to landlords, yet across the country there were 100,000 rented homes which were flooded [in December].

“Some landlords may have very good insurers, but a lot – hundreds – won’t be able to get insurance at all; or if they can get insurance, the excess may rise to something in above £75,000.”

Ms Rowntree said forums held by the association in Carlisle confirmed that local landlords were very worried.

She said: “There’s a risk that properties may be left empty, and when that happens there’s a far higher risk of arson and vandalism.”

“Carlisle City Council has been very helpful to landlords.

“We run a landlord accreditation scheme with them. But for the future the simple answer would be to include let properties in Flood Re. We can’t understand why a government scheme should discriminate against landlords.

“One third of properties in the UK are let from private landlords.” Flood Re offers some help to guest house owners, but only if most of their property is used for domestic purposes.

Mark Armstrong, 49, and his wife Debbie, run the Fern Lee Guest House in St Aidan’s Road, Carlisle.

It was among the 6,564 Cumbrian properties flooded by Storm Desmond.

He said: “The scheme will provide insurance as long as the business side is secondary. We won’t know how we’ll fare until we come to renew our policy in August. It’s been incredibly stressful.”

South Lakeland MP and Lib Dem leader Tim Farron said the Government should get round the table with insurers and thrash out an insurance scheme for the many small businessess hit by flooding.

“The scheme isn’t broad enough,” he said.

But Mr Stewart defended the scheme. He said: “Flood Re will transform the prospects for people living in flood-affected areas, with somebody whose home potentially floods every five years paying an excess of just £250.


Rory Stewart “It was an incredibly complex scheme to put together but we felt it was right to prioritise people who own their homes.

“The question is how much do you want people living in dry areas to subsidise the insurance for people in flood-affected areas? In the end, it’s money that comes from British taxpayers.

“At the moment, the average householder will pay an extra £10 a year to subsidise those living in areas which have flooded, and we think that’s fair. But you have to draw the line somewhere.”

Mr Stewart said he was working with the insurance industry to ensure flood-hit landlords and businesses can also be insured, with good “competitive” packages now in the offing.

A spokesman for the British Insurance Brokers Association said work was underway on that scheme which would offer insurance to “the majority” of businesses in flooded areas.

This would “enhance” the current situation, incentivise property flood defence measures, and insure against high excess payments.