0:04 AM, 27th November 2023, About A year ago
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After Storm Babet and Ciaran wreaked havoc across the country in recent months, there’s more bad weather on the way and landlord flood insurance is one way to help protect a rental property investment.
Flood insurance is one of the biggest challenges facing the insurance sector and landlords will want peace of mind when choosing cover amid the recent chaos of weather.
Even those with multiple properties will want to protect against flood damage but finding the right insurance cover can be tricky for landlords, especially with many insurers excluding protection from flood cover in their building and contents policies.
Flooding has become more of a risk in recent years with places that have never been flooded before now at risk of flash flooding after heavy rainfall.
According to the Environment Agency, as of 31 March 2019, 121,000 residential properties were in areas at high risk of flooding from rivers and the sea, and 458,000 were in medium-risk areas.
A further 239,000 residential properties were in flood risk areas at risk from surface water, with a further 395,000 at medium risk.
More areas are now at risk due to the lack of investment in drainage.
According to a report in 2022 from the National Infrastructure Commission (NIC), more than 600,000 properties in England face flooding in the future without investment in drainage – or flood defences.
Professor Jim Hall, the national infrastructure commissioner, said: “It’s clear that faced with more intense rainfall and increased urbanisation, we need to start taking this type of flooding far more seriously.
“The solution is clear: reducing the amount of water flowing into drains, whilst also improving the capacity of those drains.
“That means stopping urban creep from increasing the amount of stormwater that drainage systems have to cope with and giving nature more opportunities to hold on to excess water, as well as targeted investment to ensure sewers can cope with growing pressures.”
Jason McClean, director of The Home Insurer, says rental properties are excluded from the flood re scheme which can cause huge complications.
The flood re scheme is a partnership between the government and insurers which provides guaranteed flood cover for owner-occupied properties.
Jason added that many insurers don’t wish to offer an insurance quote for floods due to the high flood rate and rental properties are being excluded from the flood re scheme.
The Home Insurer has access to a few specialist flood underwriters who can give flood insurance to landlords.
Jason told Property118: “We try our best to give landlords access to flood insurance, but we can’t guarantee it all the time.
“However, given certain circumstances and talking to the client, we may be able to give them an offer with some flood cover included.
“These could include a high excess, or a limit and they may require flood doors to be in place. But, by in large, because we can speak to our underwriters, we are able to influence what happens on the insurance itself to a degree.”
He added: “If somebody is flooded twice in the last year and it’s a rental property and it’s an ongoing claim, they are unlikely to get flood insurance.
“Typically, you would have to go down the other route which is the Flood Flash route which is a more expensive way of doing it and offers a cash repayment, but The Home Insurer can offer that as well.”
The Home Insurer says it offers realistic solutions to clients when it comes to flood insurance.
Jason explains: “We have solutions on the board to deal with those problems but of course, we need to speak to the landlord and find out more about the property and we can tell you realistically what we can do to help you.”
Most insurance companies have policies that state that approved contractors must deal with emergencies such as plumbing and heating who must be called on to ensure the insurance is not invalidated if an emergency callout is required.
Self-managing landlords need to make sure that tenants have all the correct details when they start a tenancy.
Catherine Hunt, an associate at Arnolds Keys, told the Eastern Daily Press that landlords should tell tenants what to do before a flooding emergency.
She said: “It is also a good idea to ensure that your tenants know the basics, such as where the stopcock is to turn off the water in the event of burst pipes or internal flooding.
“If a flood was not caused by the tenant’s own actions (such as those caused during the recent storms), a landlord is responsible for making good any damage to the property and re-instating any damaged appliances, carpets and furniture supplied with the property.”
Ms Hunt said it’s important to remember that tenants need insurance cover for their belongings.
She continued: “Tenants are responsible for their own personal belongings, which is why it is essential that they have adequate contents insurance cover.
“Should a property be deemed uninhabitable as a consequence of a flood or other unforeseen event, the landlords’ insurance will typically cover alternative accommodation while repairs are carried out.
“If the damage is so severe and the property cannot be repaired, the landlord and tenant will need to negotiate to end the tenancy.”
For many landlords, dealing with potential emergencies such as flooding ranks as one of their primary concerns about having a residential property.
Few self-managing landlords have instant access to contractors to deal with such problems, and fewer still want to receive emergency calls from their tenants, especially during inconvenient times such as in the middle of the night, or on Christmas Day.
With more places than ever before likely to flood, it’s important that landlords look at flood insurance cover to help protect their properties.
The most efficient way to get a personal quote with the best price and cover possible is to call the team on 01832 770965 so we can focus on your enquiry when you are ready and sitting down with your portfolio details to hand.
