Nov
20

Floods: declarations and insurance


Anyone selling their property will be asked to fill out a SPIF (Seller Property Information Form) which amongst other things asks about flooding at the property. Sellers may be wary that declaring a previous flood may impact the saleability of their property, but it is not in their interest to mislead the purchaser. Indeed it resulted in legal proceedings against one seller who hadn’t considered all the photos they had uploaded to a social media site when their home flooded. When the new owners found them, they had evidence the seller was aware of the problem. See the story covered by the Telegraph in 2017 here.

With 147 warnings posted across Britain by the Environment Agency, the disruption to travel, damage to homes, upset for residents and danger to life cannot be underestimated. After the waters have receded, the clean up begins and discussions start about how to avoid it in future and the impact on contents and buildings insurance.

The Environment Agency has published a flood and coastal risk plan to cover the next 50 years believing around £1 billion will need to be invested every year until 2065. You can read more about this here

For those who may be struggling to obtain insurance, a joint initiative between the government and insurers called ‘Flood Re’ focuses on affordable flood insurance and you can find more about this scheme  which plans to run until 2039 here. It should be noted, however, that the scheme does not cover businesses in the same way, as explained in this story.

More information:

Association of British Insurers on flood protection here.
The Royal Society for the Prevention of Accidents (RoSPA) guidance here.