INSURANCE

What level of protection do I need to get reasonable insurance terms?

That depend on your insurer, but there are some general points. Most UK insurers have a risk benchmark from which they want to see properties protected from a flood which – in statistical terms – is expected to occur once every 75 -100 years. This is an assessment that takes into account the area's civil flood defences (UK Government calculated). That does not mean it will only happen once in that time – it may happen several times and it is anyway a moving target as flood risks are growing year upon year.  In short if the one in 75 year flood is two feet of water you need to be protected from at least two feet of floodwater plus a margin for safety – you may protect to say three feet - in order to expect continuing reasonable insurance terms.

My property has already been flooded. Will my insurance company pay for any additional costs of flood resistance?

The ABI has made it clear that their member insurers are happy to work with their customers in reinstating their homes to flood-resilient standards following damage, provided this is cost-neutral.  If the cost of flood-proofing is substantially greater than the standard repair, then insurers will only provide funds to cover the standard repair.

However there are now some good options for covering the rest.  The Council for Mortgage Lenders have confirmed that many of their leading members would be willing to consider extending loans to cover the additional costs of repairs provided the homeowner has sufficient equity, alternatively funding resilient repairs yourself could prove a sound investment.

How to make flood-resilient repair happen?

For properties in areas of significant flood risk where flood-resilience and flood-resistance are most appropriate, your loss adjuster should discuss options with you and discuss any cost implications that you will be expected to bear. You should discuss the implications on your future insurance premium/excess with your insurer.

Get advice from a specialist flood surveyor (Flodef are a leading member of the Flood Protection Association), who can undertake a comprehensive flood risk assessment and recommend an appropriate set of measures for the property. 

The Flood Protection Association has recently developed a professional service, which is indemnified, to undertake flood risk assessments.  This service is designed to provide a cost effective protection solution to deal with properties at risk of flooding of at least a 1.3% annual probability.

Flood Resilience and resistance – CUSTOMER Factsheet
Prepared jointly by the Association of British Insurers (ABI) National Flood Forum (NFF) and Flood Protection Association (FPA). To download copy in MIcrosoft Word format please click here.