Written by Catherine Shiers, Technical Communications Manager of Groundsure
Weather warnings related to flood risk are constantly hitting the headlines. What was once a phenomenon that occurred occasionally and mainly during winter, is happening more and more often.
There are four main types of flooding that are widely reported on; river, coastal, surface water and groundwater, each intrinsically connected to weather patterns. As of today, according to the Environment agency there are 5.9 million properties at risk of flooding, but as we continue to cut down trees or expand our towns and cities, this number will undoubtedly increase. Ambiental Risk Analytics estimate that by 2050, an additional 1.2 million properties could be at high risk of flooding.
Historically, many of our towns and cities grew up around bodies of water, as these facilitated trade and transport. As these areas have rapidly expanded, suitable land to build is decreasing, and local authorities are looking at floodplains as areas for possible development. In 2019, the Financial Times reported the top 10 local authorities with the highest number of properties located on the floodplain. Perhaps unsurprisingly, many of these authorities have experienced severe flooding over the last few years, and maybe surprisingly around 35,000 more homes are planned for these high risk areas.
Local authorities with the most homes at highest risk of flooding
Source: Financial Times 2019. Re-created by Groundsure
In 2020, where a major flood incident was declared in Shropshire due to Storm Dennis, 764 homes are set to be built in areas at risk of flooding, and in Doncaster, where the village of Fishlake was devastated by flooding, nearly 4,000 homes are planned.
Not only does flooding inundate a property with water, it can affect the structural integrity, cause contamination and impact insurance premiums and mortgageability. The UK is unique in its position that if insurance is not available for a property, the property is effectively unmortgageable.
In 2016, the government and insurance industry launched a joint initiative to better protect homes in high risk areas from high insurance premiums – Flood Re. Whilst the scheme thus far has had some successes, it is now clear that relying solely on insurance to pay out may not be sustainable and that homeowners need to play a part in better protecting their properties.
As weather related claims rise, the more insurers have to pay out, ultimately increasing everyone’s premium, and this doesn’t just impact those at risk of flooding.
Insurers and lenders will start to look for homeowners to install property level protection in addition to insurance. Homeowners in the future may not just be able to bank on insurers paying out. The current consultation on amendments to Flood Re looks to encourage greater uptake of property flood resilience among households and it may become a requirement of their insurance policy to have flood protection installed.
Regardless of where you live or what you think you might know about an area, there is a clear need to investigate flood risk in every transaction. A property may not be at risk today, or have ever flooded, but climate change is real and is increasing the intensity and frequency of bad weather. You want to ensure that your clients assets are protected throughout the lifetime of their property.
For more information about how Groundsure can help you investigate and mitigate the potential flood risk faced by your clients visit here.
