Over the last few years many insurers have invested significantly in geographic tools that enable them to predict flood exposure more accurate. As this technology evolves insurers are able to predict with increasing accuracy locations likely to flood that may not have flooded before.
The biggest problem is that as this technology evolves more and more insurers are coming to the same conclusions resulting in locations they don’t wish to insure because of the flood exposure. The result is locations where insurers simply don’t wish to offer flood cover unless they are compelled to do such because of a large client connection.
In reality this means more blocks of flats are being offered insurance renewals without flood cover or with an unreasonably high excess for flood. The problem for lessees living in these flats is that lack of flood cover can make it impossible to obtain a mortgage putting many lessees in financial hardship. This even applies to flats on higher floors and not just those on the ground floor.
Together with PM legal services we have developed a solution enabling the leases on eligible blocks to be simply amended to enable owner occupied flats to be ceded into the government backed Flood Re scheme. This makes insurance cover including flood both available and affordable for a large number of blocks.
Last month we were delighted to announce the launch at the ARMA conference and also delighted to see PM Legal Services and Cassandra Zanelli awarded for their involvement in this project at the PMA’s. You may be wondering if this solution is a sledgehammer to crack a nut and possibly that may be a fair question. However we are able to make flood cover available and affordable in many blocks of four or more flats that are otherwise unable to obtain appropriate cover.
With the threat of flooding increasing and insurers gaining a better understanding of where this will occur this is not a problem that is going away. After working on bringing a solution to market for three years I am delighted that finally we have a workable insurance product for many affected blocks.
Paul Robertson MD – 1st Sure Flats and Midway Insurance.
