Potential flood risk area

Thespoofer

Hi.

My wife and I bought our small terraced house back in 2004. We had home insurance for the first few years but haven't renewed it for a number of years ( child broke laptop and we made a small claim 8 years ago).
Anyway, I was in touch today with my motor insurance provider whom also provide home insurance, looking for a quote for the house, and they informed me my house is in a potential flood risk area ( house was never flooded, nearby neighbours did once but not ours) and cannot quote. She advised me to maybe speak to a broker or specialist flood risk company.

What are my options when owning a house as such, for example, will this greatly reduce any potential buyer getting a mortgage to purchase our house if we would like to sell? And is it possible to get house insurance given the circumstances?
Basically am I stuck with this house for evermore or is there light at the end of the tunnel.

Thanks

awec

It will make it incredibly difficult to sell.

Insurers won't be interested in providing you cover if you're deemed to be in a flood risk area, and banks will probably have a problem giving a mortgage against it in future because of this (ignoring the fact most buyers will just run a mile anyway).

Thespoofer

awec wrote: »

It will make it incredibly difficult to sell.

Insurers won't be interested in providing you cover if you're deemed to be in a flood risk area, and banks will probably have a problem giving a mortgage against it in future because of this (ignoring the fact most buyers will just run a mile anyway).

That's a bit of a shock to get I'll be honest. Thanks for the reply though.
Anyone here with experience in selling from a potential flood risk area, how did it go? ( if at all).

BarryD2

Who gave you house insurance for first few years? They must have little issue with flood risk? The thing is that these insurance companies use a very blunt tool as far as I can see when assessing flood risk. They just go by an address but an address can be very specific or it can be very general. I was getting quotes for our place a few years ago and laughed when the rep said our address was a flood risk. It is a rural area and if one lived down in the valley about a mile away, you might get flooded. But we're near top of a steep hill and I told her that if we ever got flooded, then she'd be swimming in the Irish Sea.

Anyway, ask around and try different insurers and see what the story is before getting depressed. I also don't think it's a great idea to make small claims off your house insurance, just pushes the renewals up I think. Better to get the minimum amount of cover that will pay out adequately to recover from a serious disaster, like fire etc., and just cover small 'claims' yourself?

Chr15

We were in a similar position. House is technically in the flood plain (at the edge of it), and it has never flooded while further into the estate houses have flooded several times. Insurance company told us they couldn't renew because of this risk. Then they said we could renew but wouldn't be covered for floods. We argued with them that during any of the big storms/hurricanes over the years, snow etc the flood water was nowhere near the house even when the river beside us burst its banks and all the surrounding houses were flooded. Once we explained this to them (gave them examples) we were quoted as normal.

Victor

Did they use your exact address, e.g. did they ask for your Eircode?

The question has to be asked of how much of a flood risk. Insurers are happy enough with an occasional risk (say, once every 25 years), but not with a persistent risk. It will also matter how well protected the individual property is, e.g. is there a berm around the property or is the property raised above the surrounding area.

As mentioned, you could also try for insurance without flood protection.