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Published: 14/10/2026
New flood performance certificates (FPCs) could help homeowners, insurers and lenders better understand property-level flood risk and make more informed decisions about insurance cover, according to BCIS.
Functioning in a similar way to energy performance certificates, FPCs are intended to help homeowners identify measures to reduce potential flood damage(1).
Cos Kamasho, principal consultant at BCIS, said the certificates could also provide insurance professionals with more consistent information to support risk assessments and decision making.
‘Better information could encourage improvements that reduce damage, claims costs and recovery times, and evidence that those improvements reduce risk could help insurers recognise resilience in their pricing and cover,’ he said.
‘For resilience to be reflected in premiums or excesses, insurers need confidence that measures have been properly installed and maintained. The pilots should test how that evidence can be captured consistently and whether it supports changes to insurance terms.
‘There is also a rebuild cost question. Flood-resilient kitchens, water-resistant flooring and specialist installations may cost more to replace than standard alternatives. A home could therefore be better protected against flooding but underinsured if the policyholder’s selected sum insured does not reflect those replacement costs. Homeowners making improvements should review their sum insured with their insurer or broker.
‘With Flood Re due to end in 2039, certificates could support a more sustainable insurance market. But investment in flood defences, drainage and planning that accounts for future risk remains essential. Individual households cannot carry the full cost of adapting to a changing climate.’
Flood Re is due to begin piloting FPCs this year in areas at risk of flooding, with the longer-term ambition of developing app-based self-assessments to help households manage flood risk and make more informed insurance decisions.
The announcement follows the government’s launch of Flood Action Online, a one-stop shop for flood advice in England(2). The initiative forms part of wider efforts to improve flood resilience nationally, including a £4.2 billion investment in the installation, repair and replacement of flood defences between April 2025 and March 2029 to support a new target of better protecting 200,000 properties.
The government has also announced a new Flood and Drought Resilience Taskforce(3), bringing together representatives from more than 50 organisations, including the insurance industry, to strengthen the UK’s preparedness for and response to extreme weather.
Why is flood risk linked to property underinsurance?
Around 6.3 million properties in England are in areas at risk of flooding from rivers, the sea, surface water or a combination of these sources(4).
Flood risk is expected to increase as climate change drives sea level rise and more extreme weather, including intense rainfall and storms. Prolonged dry spells can also reduce the ground’s ability to absorb heavy rainfall, increasing the risk of surface water flooding.
As more properties face potential flood damage the likelihood of insurance claims being made could also increase. This emphasises the importance of adequate property insurance and use of robust rebuild cost data to inform sums insured.
Property underinsurance remains common across the UK and often occurs when sums insured are based on property market values, outdated rebuild cost estimates or routine indexation applied to an unreliable original figure.
This can leave policyholders facing significant financial shortfalls when making a claim.
BCIS is helping the insurance industry address this risk through BCIS Rebuild Plus, an asset and portfolio management platform that enables brokers, insurers, surveyors and other property professionals to calculate rebuild cost estimates in minutes.
By providing access to robust, up-to-date rebuild cost data, the platform can significantly reduce underinsurance risk as climate change increases the potential for weather-related losses.
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(1) GOV.UK – New pioneering certificates to help homeowners cut flood risk – here
(2) GOV.UK – New ‘one stop shop’ for flood preparedness launched as we approach more weather whiplash – here
(3) GOV.UK – New taskforce to boost Britain’s resilience to flooding and drought – here
(4) GOV.UK – Tackling flood risk inequality – here
