Flood defences

We continue to see images of the devastating impact of flooding in the UK. Environment Agency flood warning systems have helped unfortunate residents and small businesses cope as best they can by predicting flooding where possible and advising on preventative measures. Those who are affected will no doubt have contacted their insurers for help with the damage and costs of alternative accommodation.

Since 1961 the Government and the Association of British Insurers have effectively secured insurance against the risk of flooding for most homes and small businesses through a series of agreements. The last agreement, reached in 2008, provided for cheaper flood insurance to be available on standard terms even where the property is at a ‘significant’ risk of flooding, so long as there are plans to reduce that risk below significant within a five year period.

Whilst the agreement does not benefit new properties or those where there is not enough funding to permit the construction of flood defences to reduce the risk, it provides significant assistance to owners of hundreds of thousands of properties throughout England and Wales.