CoverMeCagney
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The Royal Standard still lets us know when the Queen is in residence. But now the Union Jack is flown at Buckingham Palace when she isn't there, so that it can be flown at half-mast if someone important dies. As you say, as a result of Diana's death and the controversy around the flat not being lowered.
Oh yes, that's right, I knew there had to be a flag up so they could do the half-mast thing but kind of forgot there are two. Cheers for clarifying, I'm pleased we can still tell if she's home!!