Bleak insurance prospects for properties at risk of flooding
Conveyancers need to be alert to the “bleak” insurance prospects of properties at risk of flooding, property search firm SearchFlow has warned. A quarter of the UK’s properties that are at risk of flooding could be left uninsured this year, SearchFlow says.
The “statement of principles” agreed between the government and the insurance industry expires on 30 June 2013. Insurers may be reluctant to offer policies after summer 2012 as they will expire after the principles agreement. Consequently, mortgage contracts may be breached and properties may be hard to sell. According to reports, some insurers are already demanding excesses of £20,000 and above on new policies.
Richard Hinton, business development director at SearchFlow, said: “Conveyancers looking after their clients’ best interests must ensure they are aware of the risk of flooding and ensure their clients appreciate the danger posed by the end of the ABI agreement.”
