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Flood exclusions threaten regional recovery...

Following the wettest winter in the UK since records began in 1910, the Royal Institution of Chartered Surveyors (RICS) have said that industrial businesses and shops in risk areas may be forced to stop trading. 
 
Under the Flood Re scheme commercial property is excluded from compulsory flooding cover and consequently the recovery of the high streets in some UK regions is threatened.
 
As the economic recovery had gathered some momentum, demand for shops and industrial units in 2013 saw growth higher than in the previous 16 years.  
 
However, under Flood Re, being introduced as part of the Water Bill, Commercial property will not be entitled to cover. RICS has said that this could cause a negative knock-on effect on local economies in some UK regions. This will be caused by businesses that are situated in flood risk areas being unable to afford insurance and therefore having to cease trading. 
 
Jeremy Blackburn RICS UK head of policy said: “While signs are much more positive for the commercial sector, it was disappointing to see that the government is going to allow the Water Bill to pass without reference of commercial premises and business owners’ rights to affordable insurance cover. Due to the government’s failure to bring in adequate insurance provisions to protect the likes of shops and offices in flood risk areas, we could well see smaller local economies hit hard.”
 
Due to come into force in summer 2015, Flood Re is a government-backed flood insurance pooling scheme for high-risk properties.
 
It will replace the Statement of Principles, under which the insurance industry provides affordable flood cover to high-risk homes in return for government flood defence spending.
 
What to do next 
 
We have access to a variety of top insurers with the ability to supply covers for this type of protection. We are able to negotiate policies on a flexible basis to specifically meet the needs of clients.
 
If you are interested in discussing your insurance requirements or have any other questions regarding this subject, then please contact us on 01789 761 660.
 
Call 01789 761660 
 
Web: www.pi-propertyinsurance.co.uk

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