“Across December 2024 and January 2025 there has been a number of headlines relating to storms. The damage this can cause to property is a serious consideration for our home insurance clients. However there is also the serious impact that heavy rainfall can have, and in some instances this can pose a greater threat of damage to property.” says Neil Wood, Head of New Business (Insurance) at SPF Private Clients.
“We find that instead, people are more concerned about the risk of basement flooding. A lot of our clients are high-net worth individuals with property in London, and these homes can usually have at least one if not two floors below ground. The worry isn’t necessarily due to the dangers of the Thames bursting its banks, as the Thames Barrier does its job well; the main concern is of surface water flooding following a heavy storm.”
This was particularly notable in July 2021, when London was hit twice by extreme rainfall. In some parts of the capital, a month’s rain fell in just one hour, and the resulting flash floods caused extensive damage and disruption to over 2,000 properties. (Source – https://www.thameswater.co.uk/about-us/projects/london-flooding-response).
The Environment Agency classifies 17% of London as at a medium or high flood risk, and certain areas within London are at particular risk of basement flooding due to excessive surface water. The primary problem is that storm drains struggle to cope with the inundation of water, so it finds its way into the subterranean areas – cellars, lower ground floors and basements – of properties.
This increased flood insurance risk is managed for homeowners with the Flood Re scheme, a joint initiative between the Government and the insurance industry that charges a levy on properties likely to flood, or that have flooded in the past. The purpose of the levy isn’t just to pay claims, but if the insurer includes ‘Build Back Better‘ it enables them to put in place mitigating or preventative measure to make the home more resilient in the future. “The levy is based on council tax bands, which means properties within higher council tax bands could pay a significant amount per annum for flood risk alone.” says Neil. “But once that’s in place, they’re covered, and that would include, if there was flood damage, being rehoused in temporary accommodation in a like-for-like property while repairs are carried out; the costs of which alone can quickly become a significant amount.”
Advice if you experience flooding or property damage
“Insurance companies usually ask that the incident is reported ASAP, and that any further risk of ensuing damage is mitigated or prevented,” says Neil. “You might need to patch repair the roof if there have been slipped tiles or slate, and provide estimates for the damage, or resultant damage due to the basement flood.”
“However, as brokers, we ask our clients to speak to us first before they report an incident, so we can help assess the potential size of the claim and determine if it is worth damaging the reputation of the policy by making a small claim.”
Every home insurance policy asks the homeowner to ensure the property is kept in good repair and well maintained, which is worth paying attention to. “If the insurance company sees signs of wear and tear, e.g. a crack in the slates or tiles on the roof, they could technically reduce that part of the final assessment of the claim. Or they could refuse to pay the claim at all if poor maintenance resulted in the loss.” says Neil.
“There are certain measures you can take to help mitigate against a surface water flood in a basement or lower ground, and these include installing sump pumps in the basement (with an alarm system to show they’re functioning), non-return valves to drainage pipe work to prevent inward flow, and creating a tank, or extra layer, around the foundations to prevent any ingress.”
“Our clients are looking for reliable and comprehensive form of cover, so our home insurance policies provide cover known as all-risks.” says Neil. “This means everything is covered for damage or loss including storm damage, unless explicitly excluded. This is a benefit compared to some other polices which will typically define a storm as being wind speeds with gusts of at least 48 knots (55mph), or torrential rainfall at a rate of at least 25mm”.
If you would like to know more about how SPF Private Clients can help you feel confident in your insurance coverage you can contact us and speak to your of our team.
