The impact of flooding on insurance premiums

It probably hasn't escaped your notice that it's been a bit wet recently!

In fact, certain parts of the country have received the majority of their expected annual rainfall within the first three months of the year, with some towns and cities having no let-up from the rain for more than six or seven weeks on the trot.

While the British tend to love to talk about the weather (and to complain about it in a good-natured way), the country is nevertheless seeing a significant change in the weather patterns that points to warmer temperatures (and fewer snowfalls) and more rain as a consequence.

Why is this a problem above and beyond cancelling trips outside and becoming frustrated at not being able to get out in the garden to tart the plants up and giving the lawn its first mow of the season without getting wet?

With incessant rainfall, the ground becomes gradually waterlogged, unable to allow the rain to drain away properly or quickly enough. It swiftly results in surface water appearing and, in the hillier districts, a flow of water to the lower ground. All of which can create a dangerous position for homes that are in the way, with torrents and rising water levels flooding the properties.

When you buy a home, your conveyancing solicitor will perform a standard set of searches that identifies details of the history of flooding in the area, but this may result in a recommendation that an extra flood risk report be prepared by an expert.

If you take out a home survey, this, too, will highlight any evidence unearthed that the home has a history of flooding, particularly if the historical flooding has had an impact on the condition and stability of the property.

Your surveyor will raise a set of queries for the conveyancing solicitor to look into as part of the legal process (which might also trigger a flood risk report if one hasn't already been ordered).

Of course, having your home flooded out or impacted in some other way by the influx of water is a terrible experience, not the least because of the damage to the structure of the home but also the furniture and valuables inside it.

It's for this reason that homeowners take out buildings insurance, so that at least repairs and replacements can be adequately funded (dependent on the terms and conditions of the policy). To get a mortgage, too, your lender will almost certainly expect some level of buildings insurance to be in place in order to protect their financial investment in lending money to you.

The problem, though, as is often reported in the media, is that insurance companies are pushing up their premiums to protect their own business owing to the huge increase in flood-related claims that are being made.

According to research by Compare the Market, reported in Estate Agent Today, there has been a considerable spike in the insurance premiums paid by homeowners with properties that have been flooded before, with an average increase of 121%. Specifically, Compare the Market's research found that such property owners are paying an average of £437 a year, against £198 for homeowners who haven't previously claimed for flood damage.

What the analysis also found is that the closer a property is to a body of water (such as a river or lake), the more likely it is that premium payments will be higher, with an average of £12 being added for the privilege.

Source: Compare the Market

What this illustrates is that, while such information shouldn't prevent you from deciding to buy a particular property, you do need to account for everything about the home: how it is constructed, its history and condition, and what the ongoing costs are to maintain and protect it.

Buying a home is an expensive process and you no doubt want to watch all the pennies and pounds that go into it. That's why you need a value-for-money but quality conveyancing service from a dedicated, experienced conveyancing solicitor to handle all the legal affairs with the minimum of fuss. If you have any concerns about your planned purchase, talk to Homeward Legal as soon as possible.

Our conveyancers at Homeward Legal will start work on your plans as soon as you agree to the quotation and appoint them to represent you. What you are quoted is what you pay for the standard conveyancing process, so you can budget with confidence. There are some unforeseen items that might arise, such as a specialist flood risk report, and these will always be discussed and costed as they come up. Homeward Legal also operates a no completion, no fee promise, which ensures that, should the purchase or sale not go through to completion, no payment is required.

Call us now on to get your conveyancing quote started, or get a quick quote online.