Mary Dhonau OBE, chief executive of the Know Your Flood Risk campaign and multi-time flood victim, runs through what every homeowner and potential homeowner should know about their property’s flood risk and how they can mitigate the dangers
2012 started with hose pipe bans and warnings of drought but ended as the wettest in England since records began. In fact, the UK as a whole has been getting wetter in recent decades, with four of the top five wettest years occurring since 2000. The floods last year resulted in a staggering estimated £1 billion in insurance claims – £30 million to £40 million of which were made over a three-week period alone.
Flooding represents the biggest natural catastrophe risk in the UK. Presently, five million homes across the UK are at risk of flood, with at least 200,000 homes at significant risk of flood – and these figures are set to rise as our climate continues to change. Government climate change advisors have warned that protecting against floods of the kind seen in 2012 will cost at least £860 million by 2015 and that over the next 60 to 70 years, annual damages to properties could rise to as much as £12 billion. These figures are alarming; not least because, despite the average insurance claim for a flooded property being in the region of £30,000, many property owners are still unaware of their own risk and have no measures in place to protect against flooding.
In fact, a recent survey conducted by the Know Your Flood Risk campaign revealed that whilst 80 per cent of the UK claim they would not buy a house that was at risk of flooding, only 42 per cent of homeowners actually took steps to investigate their property’s flood risk prior to purchase. In spite of widespread coverage of the devastating flooding the UK has experienced over the past few years, just over half of people would investigate the flood risk of a property they considered buying in the future. Furthermore, just 57 per cent of homeowners have put no measures in place to protect their home against flood.
There is no question that flooding is becoming more frequent and the deluge type rain is causing more and more damage to homes, businesses and the country’s infrastructure as each flood occurs. It is not an issue that is going to go away; we cannot afford to ignore it and state that ‘it will not happen to me’. I’ve no doubt that many of the thousands of UK flood victims said the same prior to being flooded – myself included.
When I purchased my home, it did not occur to me to investigate its flood risk. The property had been flooded on several occasions prior to my purchasing it but, of course, the previous owners weren’t forthcoming with this information. It wasn’t until my son woke me in the middle of the night to tell me that downstairs was under three feet of water that I realised we were at risk of flooding. It was absolutely devastating. I lost so many irreplaceable items, such as my youngest son’s playgroup drawings and photos of loved ones that are no longer with us.
Who is at risk of flooding?
Quite simply, anyone and everyone is at risk of flooding.
As seen throughout last year, flooding can hit anywhere at any time. It is no longer confined to the winter months; people must remain alert and vigilant all year round. Common myths, such as “I don’t live near a river or the coast so I can’t be flooded” and “I live on a hill so I’m safe”, need to be dispelled. Those who live on a hill are certainly capable of being flooded; homes situated high on a hill in West Yorkshire, for example, were this summer flooded due to ‘over land run-off’ – rain pouring down the hill side on its way to a river.
As noted in the Pitt Review, climate change is producing more extreme weather patterns and more intense storm events. The flooding which occurred in Wales last summer, for example, took place in some areas that have not flooded in over 80 years. Flash flooding is the most frequent type of flooding in the UK and it is likely that more properties will be hit by surface water (flash) flooding over the next 25 years than by ‘traditional’ river flooding; most of these will be affected for the first time.
Changes to flood insurance
2013 sees a new era in flood insurance. The Statement of Principles, an agreement between the insurance industry and the government which commits insurers to continue to provide flood insurance for most homes and small business premises, even in areas of significant flood risk, is scheduled to come to an end on 30 June 2013 and will not be renewed.
The Association of British Insurers (ABI) has come up with a workable new way to deliver flood insurance to ‘at risk’ properties by adding a small premium to every household’s flood insurance, including those at ‘low risk’ but, at the time of writing, the government is yet to accept its proposal. David Cameron has, however, stated that a ‘hard line’ will be taken to ensure that flood insurance is available post-June 2013.
If the government does legislate that insurers must provide flood cover, I fear that the ABI will revert to ‘risk-based’ pricing – meaning that those at significant risk of flooding may well find their insurance cover is withdrawn and others may see their premiums or excesses significantly increase or that certain conditions are imposed on cover. I already know of several cases whereby insurance has increased by two-thirds and the excess amount has risen to as much as £15,000 to £20,000 – and they are among the lucky ones; those at greatest risk may not be able to obtain flood cover at any cost.
What impact will this have on my mortgage?
Apart from the extensive damage that flooding causes to a property and possessions as well as the associated heartache and disruption, the Council of Mortgage Lenders (CML) states that, in order to protect both the borrower and the lender, it is a requirement of all mortgages for a property to be covered by standard buildings insurance, including flood cover, for the full term of the contract. If insurance is not available, then it is likely that a purchaser will not be able to obtain a mortgage.
It is not only potential homeowners who need to find out if a property they are considering purchasing is at risk of flooding; current owners who cannot obtain flood insurance may find themselves in breach of their mortgage contract which could ultimately lead to their home being repossessed.
Being prepared and having flood mitigation measures in place may make all the difference between being able to obtain flood insurance and meet the terms of the mortgage agreement or not.
Flood risk
How can I find out the level of flood risk to my home or a home I am considering buying is at risk of flooding – and what can I do to protect it?
It is not all doom and gloom; there is a quick, easy and extremely cost-effective way to find out the risk to your property.
In order for homeowners to proactively assess their own flood risk, the Know Your Flood Risk (KYFR) campaign (www.knowyourfloodrisk.co.uk) has launched a straightforward and easy to understand Flood Report which enables homeowners and potential buyers to investigate their property’s flood risk, as well as understand whether their property is likely to be insured at standard terms.
Costing £20 +VAT, homeowners and potential homeowners can quickly and easily find out if their home or a property they are considering purchasing is at risk of flooding and then take steps to mitigate the risks – which is where the new Homeowner’s Guide to Flood Resilience comes in.
In order to provide homeowners with practical advice on what they can do to protect their home from flooding, however small or large their flood risk, the KYFR campaign has also launched ‘Homeowner’s Guide to Flood Resilience’, developed in partnership with RAB Consultants, experts in flood risk and incident management. The document is free to download at www.knowyourfloodrisk.co.uk.
The guide makes things easy for homeowners. It explains about the different types of flooding and why, just because you don’t live near a body of water, you may still be at risk of flooding. It provides detailed advice on how homes may be protected and even recommends various products for homeowners to install. Success stories are also highlighted, showcasing the tremendous benefits of being prepared for flooding.
Light at the end of the tunnel
My home has been flooded on numerous occasions but, once I made it flood resilient, not only was the amount of water that made it into my house greatly reduced, but the damage was so minimal that I didn’t even put in an insurance claim and was back living downstairs within three weeks; a far cry from the average £30,000 insurance claim and nine months that most flood victims are kept out of their homes.
Don’t be caught out. If you are prepared, there is absolutely no reason that you should suffer the loss, disruption and heartache that flooding causes.
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