News & Insights

In June 2013, the agreement between the insurance industry and the Government, “The Flood Insurance Statement Of Principles Agreement” will not be renewed. It has been important for many years to the 5 million plus property owners in areas considered to be at risk to flooding who may now see the following effects:-

• significant increases in their insurance premiums
• higher excesses
• restrictions in cover
• in extreme cases, no cover at all

According to the Association of British Insures, at least 2.2 million properties in England and Wales are at risk of flooding from rivers or the sea; and more than 1 million of these are also at risk of surface water flooding.

The Law Society now encourages Solicitors  to make sure that they carry out Flood Report searches in their conveyancing work. The main ways of learning more about the risk of flooding are:-

• conducting searches
• making enquiries of the seller
• instructing a valuer/surveyor to carry out a physical inspection and to provide an assessment on the impact of flood risk

Searches are available and are already often undertaken where a client is obtaining a mortgage which will provide information about all types of flood risks including surface water and ground water flooding.

New Property Information Forms recently brought in by the Law Society ask for details of any flooding which may have affected the property being purchased and in the purchases of commercial properties standard forms require the seller to provide details of any flooding for which they are aware and ask whether the seller has had any difficulties in obtaining insurance at normal rates, excesses and exclusions.

As a brief guide to homeowners, you may want to consult the Environment Agency Flood Map which provides a free postcode search for information on flooding from rivers and sea but not common flood causes such as surface water and ground water. The Flood Map can be located at

http://www.environment-agency.gov.uk/homeandleisure

If you would like to discuss any of these issues further please do not hesitate to contact any of our Property Team.