The actual definition of significant flood risk is a greater than 1 in 75 chance of flood in a year. A recent study by the Association of British Insurers (ABI) says this relates to nearly 200,000 properties in England and Wales.
At present if you wanted affordable insurance in these areas you would be able to. This is due to an agreement, a ‘Statement of Principles’, between government and insurers. Insurers agree to cover such properties as long as the government agrees to raise awareness, spend money on better flood defences and protect those properties that are at greatest threat from flood. In the latest spending review from 2011-2015 spending from central government on flood defences was cut by 10%.
This original statement was agreed back in 2000 as a largely short-term measure to build on and improve and eventually become a long term solution. However, despite the fact that the government and ABI are still in talks it looks likely that this agreement will end in June 2013.
Should this happen, nearly 200,000 homes in England and Wales could have their premiums and excess spiral or at worst become uninsurable. This would become a very serious concern to anyone buying one of these properties. And if that doesn’t put you off, would a mortgage company even lend the money on such a property?
Should you wish to find out whether your property or the property you are buying is in a flood risk area, a report for just £20 + VAT is available
Other than the excellent flood data the report will indicate whether your property is insurable and any claims data due to flood within the vicinity.
Simply go to www.lawagents.co.uk/environmental-searches.html to find out more on how to order this and other reports.