Insurers push for upfront flood risk traffic light system but homebuyers urged to investigate further

Print This Post

30 September 2016


Searchflow 200x200The Association of British Insurers (ABI) is urging estate agents and property websites to provide up-front information about flood risk, using a simple traffic-light style mark, as it reveals that fewer than one in three people researched the flood risk of the property before buying their current home.

Responding to the ABI campaign, Greg Bryce, managing director of SearchFlow, property intelligence specialists, comments: “There has been a growing focus within the industry to improve the transparency and quality of information for homebuyers prior to their purchase.  With so few investigating flood risk when buying a home, the call from the ABI for more upfront information on flooding is welcomed.

“However, the information proposed by the ABI should not be construed as a definitive risk assessment or unnecessarily deter people from purchasing a property.  Regardless of whether flood risk information is made available on property details from the outset, it is recommended that conveyancers conduct specific searches for flood risk, and to arrange for an in-depth assessment by a technical expert if there is any flood risk to the property.

“Homebuyers informed of a potential flood risk will be very wary of purchasing a property in a flood risk area. But for many, despite searches revealing there is a risk, it may not happen. Homebuyers need to be informed of any risk so they can ensure they are properly protected; just in case.

“The consequences of flooding are clearly devastating for homeowners and, for many, this has been compounded by insurance premiums skyrocketing with exceedingly high excess, or worse, homeowners unable to insure their property against the risk of flood.

“To aid those in high risk flood areas, a joint industry and Government sponsored affordable flood insurance scheme, Flood Re, was rolled out in April 2016. It enables flood cover to be affordable for those households at highest risk of flooding.

“The conveyancing sector is in the best position ever to ensure homebuyers are properly protected with the right insurance in place and fully informed of potential risks prior to a purchase. Leading data search providers for the conveyancing industry are providing the most comprehensive and up-to-date data on flood risk areas to help ensure conveyancers carry out their due diligence with confidence.”



Associate News is provided by Legal Futures Associates.
Find out about becoming an Associate



Leave a comment

* Denotes required field

All comments will be moderated before posting. Please see our Terms and Conditions

Legal Futures Blog

‘No, minister – CMCs are not the answer to your problem’

Qamar Anwar 2

Last month, MPs on the justice select committee asked minister Lord Keen what would happen when the government went ahead with its plan to raise the small claims limit for personal injury claims (from £1,000 to £5,000 for road traffic related claims and to £2,000 for everything else). As it is a jurisdiction in which lawyers do not generally operate – because legal costs are not recoverable – who might help claimants navigate what can still be a complex process? His answer, surprisingly, was claims management companies.

February 22nd, 2018