House near water body

smpillai11

We viewed and very much liked a house in Dublin. This house happens to be near a small stream. The stream had flooded when the floods hit the country last year. Since then the banks have been raised and a new wall has been built to avoid flooding.

I called up chill insurance and they said that they wont provide full insure cover for a house within 200m of a water body. The cover would exclude floods

My mortgage broker advised to stay away from bidding for this house as without full insurance the bank wont lend

Does anyone have a similar experience or suggestions?

Samuel T. Cogley

Your broker is almost certainly correct in this regard.

L1011

If the house itself hasn't recently been flooded (only land outside) there are insurers who will insure in these cases but they are painfully expensive. You need to use a traditional insurance broker, not someone like Chill.

If it has flooded itself, it is presumably cheap and for good reason - cash buyer only. Banks won't lend on uninsurable properties.

smpillai11

L1011 wrote: »

If the house itself hasn't recently been flooded (only land outside) there are insurers who will insure in these cases but they are painfully expensive. You need to use a traditional insurance broker, not someone like Chill.

If it has flooded itself, it is presumably cheap and for good reason - cash buyer only. Banks won't lend on uninsurable properties.

Thanks. The house itself hasn't flooded. I called up a couple of traditional insurers and they the house is in a flood risk area and declined to provide cover. I will call up some more and see

L1011

You'll be calling all of them and getting the same reply. (proper) Broker is the only way to go for anything awkward. You could easily get cover from an insurer that refused you on the phone.

Samuel T. Cogley

Also bear in mind that even if you get insurance the banks valuer might throw up concerns.

Varta

There are numerous properties next to watercourses, especially in Dublin. As usual, Irish insurers pick and choose and most of them won't insure - even if you live 20 stories above the waterline! FBD is one insurance company that will (they insure my riverside property) on the basis that the property has not flooded previously. The premium is no different than average for the type of house. Some people panic when they hear the word watercourse, but the fact is that there are many properties in Dublin within 200 metres of a watercourse that won't ever be flooded until at least half the city is under water. Height above water level is what counts not distance.

smpillai11

Varta wrote: »

There are numerous properties next to watercourses, especially in Dublin. As usual, Irish insurers pick and choose and most of them won't insure - even if you live 20 stories above the waterline! FBD is one insurance company that will (they insure my riverside property) on the basis that the property has not flooded previously. The premium is no different than average for the type of house. Some people panic when they hear the word watercourse, but the fact is that there are many properties in Dublin within 200 metres of a watercourse that won't ever be flooded until at least half the city is under water. Height above water level is what counts not distance.

Yes, the 200 metres rules is very silly, should be level based. I will try calling FBD tomorrow. thanks

smpillai11

FBD go to Zurich for insurance. Zurich already said they wont cover floods

cerastes

While I get where insurers are coming from, theres a certain amount of ridiculousness to this, given that most urban areas developed over centuries beside watercourses, surely its still possible to get them to be obliged to cover with conditions on flooding, otherwise what is everyone to do? abandon all properties near watercourses.
Personally I wouldnt buy near a watercourse for this reason (if I had the means to buy), but what do all the people who have properties that were planning approved and are beside watercourses actually do for insurance??

Varta

smpillia11, I just checked my FBD policy documents and there is no mention of Zurich. When I took out the cover the only question I was asked regarding flood risk was "As far as you are aware has the property ever been flooded?". I was honestly able to say that the house has never been flooded. As I said, I believe my premium is very competitive.

L1011

smpillai11 wrote: »

FBD go to Zurich for insurance. Zurich already said they wont cover floods

FBD *are* an insurer. Not a tied agent

Go to a broker. Call centers will not be able to offer all options