Record rainfall highlights future insurance issues
Over the past month the UK has seen record levels of rainfall, nearly twice that which we would normally expect for April. As of 4 May, the Environment Agency still has 82 flood warnings in force, 21 of these alerting homeowners that immediate action is required.
Properties in flood risk areas can suffer devastating affects from heavy rainfall. Surface water flooding impacts on twice as many properties as those situated near coasts or rivers.
Whilst the worse is likely to be over, the bad weather is due to continue into May meaning that attempts to rectify any damage to property are delayed.
Standing water can cause structural and cosmetic damage to property, with potential secondary problems being caused by trees falling onto buildings.
The Statement of Principles which covers insurance in the case of flooding is due to end in June 2013, this is predicted to impact on annual insurance policies and premiums taken out from July of this year.
The obvious implications for future insurance and mortgage validity could mean an estimated 200,000* homes throughout the UK will be unable to obtain affordable flood insurance.
Encouraging your clients to obtain a desktop flood report for any property they are considering purchasing or leasing not only ensures they are fully informed, but demonstrates your due diligence should they subsequently suffer damage as a result of flood.
For more information of flood reports contact your local PSG office.
*Association of British Insurers News Release March 2012
Associate News is provided by Legal Futures Associates.
Find out about becoming an Associate
Tags: Property Search Group, Property Searches