Floods
With Flood Re in operation for nearly a year, homeowners in flood-risk areas have been provided with some comfort. However, Flood Re does not come without its issues – although it is designed to cover properties in high risk areas of flooding, some properties are excluded, such as certain commercial properties; apartments in blocks of 4 or more properties; buildings split into 3 properties where the freeholder is not resident; buy-to-Let properties; and properties in high-risk areas built after 1 January 2009. This excludes a vast number of properties based on their ownership rather than on the physical risk of flooding. In December 2016, the British Insurance Brokers' Association (BIBA) announced an insurance scheme that will include flood cover for many commercial premises and let properties in flood risk areas that are ineligible for Flood Re. However, it should be noted that the product is exclusively for BIBA members.
Floods continue to be a problem in the UK. In an attempt to recognise the extent of the risk, the Environment, Food and Rural Affairs Committee (EFRA) published, in October 2016, a report proposing a new model for managing flood risk, which involves setting up a National Floods Commissioner for England, regional flood and coastal boards, and an English Rivers and Coastal Authority. EFRA also seeks a revision of building regulations to provide for the flood proofing of properties and calls for developers to be liable for costs of flooding if they do not comply with planning laws.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.