Is your home at risk of flooding?

Just because you do not live by the sea or near a large river, this does not mean that you are not at risk of flooding. The Environment Agency has a first class website that allows you to put in your postcode and see if anywhere near you is likely to be vulnerable to flooding. So at least you can be certain what the risks are.

In general, the insurance industry has agreed with the government that it will offer flood insurance to homes where inundation is not likely to occur more frequently than once in every 75 years. Unfortunately, this leaves half a million homes (about one in 40) at risk of not getting insurance protection against this risk. The government has also recently announced an £800 million increase in the annual spend on flood defences, so this should make a difference for many homeowners living on the margins, although it is important that this intention converts into well targeted action.

Where insurance is available, it may start to carry heavy excesses – that is the amount of money the homeowner has to pay – before an insurance policy cuts in. This and areas where cover simply isn’t available, makes financial planning and positive action important for thousands of families throughout the UK.

Firstly, there are some steps you can take if you find that you are potentially at risk.

• Discuss the issue with your local Environment Agency Officer – there may be plans in hand to improve protection in your area and your insurance company (or prospective insurer) will need to know about this.
• If there are no plans, lobby your MP for urgent action to be taken – and copy in the Prime Minister and Chancellor of the Exchequer, to let them know that even more funding is needed. You are unlikely to be alone and sufficient pressure might help (especially in marginal constituencies).
• Consider installing flood protection devices in your own home – but take professional advice first.

If occasional flood damage looks inevitable, there are steps you can take to minimise the impact, including:

• Replacing gypsum plaster with water-resistance alternatives;
• Switching kitchen units from chipboard to steel; and
• Moving electric outlets and meters above the likely flood level.

And if all else fails, you could consider creating an investment plan specifically to meet the costs of flooding, should it occur. But for most people, this will hopefully not be necessary; although there is every indication that our weather will become more extreme and less predictable during the foreseeable future.

If you require any further information about the services that we provide or would like to review your financial planning position, please contact us

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