Insurance for flood risk properties

Given that flooding only tends to vault to the top of the national conversation at times of obvious crisis, it can sometimes be easy for property owners to assume floods are only a genuine risk to a tiny minority of houses.

However, with past assessments having found that about one in six properties in England – approximately 5.2 million properties – are at risk from flooding, the chances of your buy-to-let property sustaining flood damage at some point might be a lot higher than you think. Dealing with a flooded property can be expensive and disruptive, particularly when extensive drying, cleaning and structural repairs are required.

Perhaps one reason why many landlords might be prone to underestimating the risk flooding could pose to their property is a tendency to imagine that only properties near rivers or the sea are truly at risk. In reality, flooding can be caused by such factors as surface water, groundwater and overflowing sewers, too. This means properties can still be vulnerable to flooding even when they are not located close to a river, reservoir or coastline.

And even if your property is only ever flooded once during what might be many years in your ownership, the result could still be damage that you will need to pay thousands of pounds to correct. And only a few of us have that kind of money spare. More than that, flood damage can spell bad news for your property’s value, in addition to causing considerable inconvenience to your tenants. Depending on the severity of the damage, the property may also be temporarily uninhabitable while repairs and specialist drying work are carried out.

Your buy-to-let property, of course, is a crucial investment that you will want to protect. So, it makes sense to arrange a landlord’s building insurance policy that specifically covers your property against the risk of flooding. But what else should you know if you are perusing your options for insurance for flood-risk properties right now?

Is my property really at much risk from flooding?

There is a vast range of things that could potentially damage your buy-to-let property’s structure, encompassing the likes of fires, storms, and even accidental damage. So, it might seem odd to you to particularly prioritise flooding when you are comparing the insurance policies available on the market. But some properties can undoubtedly present a greater flood risk than others. So, whether you already own the given property you are looking to have insured or you are on the verge of purchasing it, it is well worth doing your research to ascertain whether it could be a particular flood risk.

Researching the likelihood of flooding before buying a property can help you make a more informed decision about its suitability as an investment, as well as the possible insurance requirements and repair costs.

Knowing where to start isn’t always easy. Sure, you can check local news archives to see whether flooding has been a recurrent problem in the area over the years. Or you can even talk to local residents to see whether they have encountered such issues directly. 

But usually, the best way to find out if a property has flooded before is to use the resources on the GOV.UK website, which allows you to check a particular English locality’s long-term flood risk, or even find the flooding history of a specific property. It is important to consider the risk from different sources of flooding, rather than only looking at river or coastal flooding.

These are all steps that can help you make the right choices when it comes to buy-to-let property investment and the arrangement of suitable insurance. During the purchasing process, searches and enquiries may also provide information about known flooding risks or previous incidents affecting the property.

How to find the right insurance for flood risk properties

The term ‘flood insurance’ might seem a bit of a misnomer, given that – as we touched on above – it definitely isn’t just flooding that can pose a risk to your buy-to-let property. And here at CIA Landlords, we would always strongly advise you to purchase a policy that caters to the full range of conceivable risks to your property. Focusing specifically on flooding, though, you shouldn’t settle for flooding merely being mentioned in the policy terms. That’s because you need to pay close attention to the policy and schedule wording, along with the general exclusions of the given plan, so that you are in no doubt about what is and isn’t covered.

You should also check the excess that would apply to a flood-related claim, as properties in higher-risk areas or those with a history of flooding may be subject to different terms.

The very worst thing would be for flood damage to be excluded from the policy altogether, as this would probably leave you having to pay the full costs of repairing the damage. Whether a given flooding incident leaves your property with relatively manageable and repairable damage, or the entire property has effectively been put at risk – necessitating rebuilding work – appropriate cover may help with the resulting costs, subject to the policy’s terms, limits and exclusions.

When comparing insurance, check whether the policy offers suitable protection for repairing or rebuilding the structure, removing damaged materials and carrying out any necessary remedial work. You should also make sure the rebuild value provided to the insurer reflects the likely cost of rebuilding the property, rather than its market value.

On top of this, the best possible landlord buildings cover for a flood-risk property won’t merely help pay for the damage, destruction, or loss of the property. That’s because it should also cover the likes of alternative accommodation costs that can arise after flood-related damage.

Depending on the policy, cover may also be available for loss of rent if tenants are unable to remain in the property while repairs are completed. Always check the individual policy wording to confirm what protection is included.

Note that some insurers apply exclusions to certain local areas that are especially prone to flooding. So, you should take care to ensure the ‘small print’ of your chosen policy won’t deny you the chance to make a claim.

You should answer all questions from the insurer accurately and disclose any known history of flooding when asked. Failing to provide relevant information about a previously flooded property could affect the cover available or the outcome of a future claim.

What should landlords do if their property floods?

If your rental property floods, your first priority should be the safety of your tenants. They should avoid entering the property if there is a risk from contaminated water, damaged electrics or structural instability.

You should contact your insurer or insurance intermediary as soon as it is safe to do so and follow their instructions before arranging permanent repairs or disposing of damaged belongings. Where possible, take photographs or videos of the flooded property and keep records of emergency expenses, professional reports and communications with tenants.

The property may need to be inspected by qualified professionals before its gas or electricity supply can be safely restored. Flood water may also contain sewage, chemicals or other contaminants, so specialist cleaning and drying could be required.

Keep tenants informed about the extent of the damage, the expected repair process and any arrangements for alternative accommodation. The responsibilities of the landlord and tenant will depend on the tenancy agreement, the circumstances of the flooding and the insurance cover in place.

All in all, if your buy-to-let property is one at particular risk of flooding, it is crucial that you arrange suitable landlord buildings insurance for flood risk properties. The right policy can provide valuable financial protection if you are faced with a flooded property, helping you manage repair costs and minimise disruption for your tenants, subject to the terms of the cover.

At CIA Landlords, we can help ensure you find the right policy for your needs, and we won’t push a policy on you that isn’t well suited. Simply contact us today for a quote. Looking for more specialist advice? Visit our advice centre where we offer guidance on topics such as disputes, legal issues and more.