Flooding happens…be prepared
Over 5.2 million properties in England are at risk of flooding – 1 in 6 properties.
The problem is going to get much worse. 2012 was the wettest year on record for England. With climate change and the increased incidence and intensity of flood events, Defra has warned that flood damage will increase 10 fold from £1.2 billion to £12 billion by 2080.
Beware surface water and sewer flooding
Over half of all flooding in England, 2.6 million properties, is caused by surface water flooding alone.
Surface water (pluvial) flooding often occurs far away from any watercourse so property owners may not foresee the risk. It is prevalent in urban areas following flash floods, where the ground is impeded with hard standing and drainage systems are overwhelmed.
A particular hazard is over stressed sewers leading to properties being flooded with raw sewage.
Mobilising land and groundwater contamination
Flash floods or persistent rainfall can create legal liabilities for land owners and developers by mobilising existing contamination.
In the St Leonards case, Crest Nicholson a residential developer became a “causer” of contamination by removing buildings and hard standing at a development site near St Albans. The rain washed bromide and bromate contamination into the underlying chalk aquifer leading to a 20km plume of contamination.
The overall cost of remediation is expected to be over £16 million.
Obtaining flood insurance in high risk areas
If a property is in a high risk flood area or has been impacted by previous flooding it may be difficult to obtain a mortgage, obtain affordable insurance or sell the property.
The current agreement (Statement of Principles) between the government and the Association of British Insurers (ABI) provides a subsidy for properties at high risk of flooding, however it expires on 30 June 2013.
The ABI have agreed to voluntarily honour the agreement until 31 July 2013. After this there is a risk that insurers will impose much higher premiums or excesses for high risk properties or refuse to provide insurance.
If a buyer or property owner is faced with this issue now, they should find a flood specialist insurance broker via the British Insurance Brokers’ Association www.biba.org.uk 0870 950 1790.
Law Society Flood Risk Practice Note
On 23 May 2013, the Low Society issued a Practice Note on flood risk.
It recommends that all solicitors involved in property transactions should
(a) Mention the issue of flood risk to clients and if appropriate make further investigations
(b) Conduct appropriate investigations – commercial searches, make enquiries of the seller and /or instruct a surveyor to advise on flood risk
© Before exchanging contracts, establish the terms on which building insurance, including flood risk cover is available.
Flood Searches
Anyone can make a free search on the Environment Agency Flood Map, however this only highlights flooding from rivers and the sea for a particular postcode area.
http://www.environment-agency.gov.uk/homeandleisure/floods/31650.aspx
To assess the risks for specific properties including the risks from groundwater, surface water flooding and overflowing sewers, you need a commercial search from providers such as GroundSure.
http://www.groundsure.com/products/commercial/groundsure-review
More detailed flood risk mitigation surveys may be required. Please contact ELM Law for recommended consultants.