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1 GroundSure: Environmental Searches 1
Flooding and the Implications to Home Buyers
David Kempster
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Agenda
Legislation and Guidance
Facts, Figures and the reality in the UK
Due Diligence
Data
Case Studies and Opinion
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Current Legislation/Guidance
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Flood and Water Management Act 2010
Statement of Principles extended to 2015
Law Society Practice Note on Flood Risk
National Policy Planning Framework
Pitt Review 2007
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Flood – The Facts
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2.4 million at risk of River or Coastal Flooding alone
2.8 million at risk of Surface Water Flooding
alone
1 million at risk of both types
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Flood - Facts and Figures
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5 million people live and work in flood risk areas
55% of water treatment plants at risk
14% of electricity infrastructure at risk
2,358 schools at risk
£7 billion has been paid out since 2000
The effects of flooding and managing flood risk are costing around
£2.5 billion each year.
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2013/4 – A UK Perspective
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Winter 2013/14 – Wettest winter in the long running England and Wales Precipitation series from 1766.
Rainfall total is 532 mm, which is 161% of the 1981-2010 average. 1
£1.1bn worth of insurance claims (and still rising)
6000+ properties flooded
4 deceased
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Due Diligence
Law Society Practice Note on Flood Risk
Negligence Claims
TA6 – has any part of the property ever been flooded? – this will not provide a sufficient answer of the risk of flooding
Pitt Review “flood risk should be made part of the mandatory search requirements when people buy property.” (Recommendation 63)
Flood Searches
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Due Diligence – Insurers and Lenders
Residential Property – Council of Mortgage Lenders
“It is a standard condition of all mortgages for the property to be covered by standard buildings insurance, including flood cover. If insurance is not available, then it is unlikely that a property will be mortgageable.”
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In the News
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Householders braced for more flooding as 80mph winds sweep in.People across southern England are bracing themselves for more flood misery with forecasters predicting that heavy rain and winds of up to 80mph will sweep across the country later.
Lethal storm and tidal surge sees thousands out of homes.
Thousands of people have had to evacuate threir homes as a severe storm batters large parts of the UK. England’s east coast is experiencing the worst tidal surge in 60 years.
Half-million homes at risk are not covered by flood scheme.
Almost half the homes deemed at serious risk from flooding will not be covered under the government's new flood insurance scheme because officials have decided to omit the future impact of climate change.
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GroundSure Flood Data
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Environment Agency
Flood Zones
NaFRA
Flood Defences
Flood Storage Areas
Historic Flood Events
Watertight
Flood Protection Measures
JBA
– Surface Water (Pluvial) Flooding
– Reservoir Failure
– Insurability Index
British Geological Survey
– Groundwater Susceptibility &
Confidence Areas
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The Data
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JBA Pluvial Data EA NaFRA Data
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Case Study –Residential Flood
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Extract from Environment Agency flood map
CASE STUDY
Residential Flood Green Lane Gardens
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Extract from JBA flooding
CASE STUDY
Residential Flood Green Lane Gardens
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CASE STUDY
Residential Flood Surface Water
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Highly Significant - depth of flooding greater than 1m in a 1 in 75 year rainfall event
Significant - depth of flooding 0.3m to 1m in a 1 in 75 year rainfall event
High - depth of flooding 0.1m to 0.3m in a 1 in 75 year rainfall event
Moderate to High - depth of flooding greater than 1m in a 1 in 200 year rainfall event
Moderate - depth of flooding 0.3m to 1m in a 1 in 200 year rainfall event
Low to Moderate - depth of flooding 0.1m to 0.3m in a 1 in 200 year rainfall event
Low - depth of flooding greater than 0.1m 1 in 1000 year rainfall event
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28th June “Thunder Thursday” hit the north of England
1500 lightening strikes in 1 hour50,000 homes lost powerStorm lasted 2 hours
2 ft. of water & sewage burst through the floorboards
Over a months rainfall in two hours
30 properties affected
No electricity or heating for over 2 weeks
9 months on residents are still cleaning up their streets
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CASE STUDY
Residential Flood Green Lane Gardens
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CASE STUDY
Residential Flood Green Lane Gardens
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CASE STUDY
The aftermath
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CASE STUDY
Thunder Thursday
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Effect of property value
Structural damage
Contamination
Reduced value
Lender reaction – lower loan to value ration, search precondition, retention until flood protection measures are in place
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Expert Opinion
.MAP - Essential digital mapping delivered with high value site intelligence embedded in client workflow
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The Future – Flood Re
The cap will be based on Council Tax bands:
The capped premiums will go into the fund to help pay for flood claims
Eligible Properties: Insured in the name of individuals, council tax band, residential, individual premium, occupied by owner or immediate family
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Council Tax band
A B C D E F G
Buildings only – net £132 £132 £148 £168 £199 £260 £334Contents only – net £78 £78 £98 £108 £131 £148 £206Combined - net £210 £210 £246 £276 £330 £408 £540
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The Future – Flood Re
Flood Re claims funded by premiums and industry-wide levy on UK domestic properties
The claims system will likely need to accommodate up to 100k properties at any one time
Flood Re will cover losses up to a 1 in 200 year flood
Standard £250 reinsurance excess on Flood Re homes
Should an extreme flood occur before the fund builds up, and claims outstrip the available fund, the Government will step in to support distributing available funds to affected households
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Exclusions
Properties in Council Tax band H (I in Wales) – Government are now reviewing this exclusion
Properties built after January 2009
Any size commercial property:
BusinessesBed and BreakfastsFarms
Leasehold Properties
Residential Landlords
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Flood Re
The Flood Re levy will be classified as a tax
Flood claims for Flood Re homes will be handled and funded by insurers, who will then recoup the cost from Flood Re
Flood Re will have no direct interaction with customers
Levy will build up £180m fund, based on handling 1: 200 annual aggregate loss
Reinsurance limit set at 1: 200 annual aggregate loss
Government will not formally step in if exceeded, but take ‘primary responsibility’ for allocating any available resources
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What to do next
Obtain flood insurance
GroundSure manual flood risk assessment
Discuss your requirements with Watertight
Flood protection measures
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Resistant and Resilient Measures
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1. Pipes & Cables
2. Air Brick Covers
4. Walls must be in good order.
3. Air Brick Replacement
7. Basements & Cellars
5. Door Barriers
8. Sewerage Flooding
6. Garage Door Barriers
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Resistant and Resilient Measures
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Watertight
Sewage Backflow Prevention £150 - £450
Smart Airbricks £250 - £750
Repointing £500 - £1000
Demountable Barriers £1,500 - £3,000
Prices are guided prices and may vary depending on the site
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Which environmental report to use?
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HomescreenContaminated land, ground stability & flood screen
HomebuyersCOMBINED Contaminated land, ground stability & comprehensive flood
ScreeningContaminated land & flood screen <15ha
ReviewMore detailed report in the industry, FULL Flood <5ha
Residential FloodComprehensive flood report:EA & NaFRA dataJBA surface waterBGS groundwater
Commercial FloodviewComprehensive flood report <10ha:EA & NaFRA dataJBA surface water & reservoir failureBGS groundwater & confidence areas
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Residential and Commercial Flood
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THANK YOUQuestions?
CONTACT
David Kempster
Email: [email protected]: 08444 159 000Mob: 07780 455635www.groundsure.com
