Statistics show that 1 in 6 properties in England and Wales are at risk of flooding from rivers and the sea causing chaos and wide spread destruction. In addition to the emotional and physical damage caused by flooding, if a property is at risk then it may also impact on a person’s ability to be granted a mortgage, obtain suitable buildings insurance cover or even sell the home in the future.
If you are thinking of buying a property then the main ways of learning more about the risk of flooding are through conducting searches. Instructing a conveyancing solicitor, checking the Environmental Agency website, making enquiries of the seller or instructing a Surveyor to carry out a physical inspection of the property in question will help identify any potential flood risk. Unfortunately, it may not be sufficient to rely on just one type of investigation alone.
It is imperative that potential flood risk is considered particularly where mortgage finance is required, as lenders are increasingly likely to investigate flood risk and in turn, impose additional conditions on their mortgage product. One of these conditions will most certainly be that flood risk is a specified cover in any buildings insurance policy.
Indeed, when a property is seen to be at risk of flooding, insurance companies may refuse to insure altogether or impose much higher premiums (especially if a property has previously made a flood claim) and/or excesses.
Potential purchasers of ‘flood risk properties’ should therefore investigate the buildings insurance position from the outset of the conveyancing transaction (and certainly before entering into any contractual commitments) so that they are aware of the likely excessive cost that could be involved.
