Flood insurance
|
The twin effects of climate change and development on flood plains have become increasingly problematical for home owners and property insurers. Greater amounts of rainfall generally and more and more exceptional weather incidents have resulted in the insurance industry facing ever-rising flood-related insurance claims. In the UK, summer 2012 was the wettest for a century, in June alone flood claims were running at around £17 million per day, while in November 2019, floods in Yorkshire and Derbyshire caused widespread misery and damage to property.
All this means that properties in flood-prone areas are increasingly expensive to insure. Some are completely uninsurable.
Since 2000, in response to the increasing risk of flood damage to vulnerable properties, there has been an agreement in place between Government and the insurance industry (represented by the Association of British Insurers) whereby insurers would continue to offer insurance cover on vulnerable properties in return for guaranteed levels of public spending on flood defences.
However, this agreement ended in 2013 and was superceded by a new agreement which took effect in 2015, under which all homeowners, not just those affected by flooding, pay a fixed annual sum to help cover the cost of flood damage. This helps reduce insurance costs of those directly affected. In fact, homeowners have, for some time, been paying this amount, but the arrangement is now being formalised.
Insurers may continue to offer renewal terms on vulnerable properties, although the premiums will still be high when compared to low-risk properties. The premium differential for equivalent properties in high and low risk areas can be as much as four times.
If a property is in a high flood-risk area, there is no guarantee that insurance will either be available, or available at reasonable cost and the new agreement does not change these facts. Information on flood risk is available via the Environment Agency.
[edit] Related articles on Designing Buildings
- BREEAM Flood risk management.
- BS 851188.
- Environment Agency.
- Factors affecting property insurance premiums.
- Flood.
- Flood and Water Management Act.
- Flood Re.
- Flood risk.
- Flood risk management plan.
- Future Water, The Government’s water strategy for England.
- Insurance.
- Joint names policy.
- Planning for floods.
- Pitt review.
- Rainwater harvesting.
- River engineering.
- Sustainable urban drainage systems.
- Thames barrier.
- Water engineering.
[edit] External references
--Martinc
Featured articles
Check out some of the best features and news from Designing Buildings as well as key stories from around the web.
New Chief Construction and Scientific Adviser
Sergio Cavalaro, Professor of Infrastructure Systems at Loughborough University.
Building safety levy for England
CIAT publish estimator tool for members.
Water sector faces a growing crisis that could slow the delivery of vital infrastructure.
Undervaluing our industrial past
Heritage value changes as taste for building styles changes.
Changing expectations around competence and compliance
New information sheet from CIAT.
Grenfell investigation files passed to CPS
Angela Rayner apologises on behalf of the British state.
Electrical contractors need to understand the practical implications.
The real barrier to getting more value from digital technology.
Your guide to The Construction Reset at UKCW Birmingham.
Accommodating the Victorian and Edwardian working woman. Book review.
Rethinking passive fire protection in design
PFP demands the same level of design rigour as structure or services.
38% of Gen Zs feel safe when a fire door is wedged open.



















Comments
To start a discussion about this article, click 'Add a comment' above and add your thoughts to this discussion page.