Insurance in flood risk area

[loveka]

We are in the process of buying our property, but on the day of exchange came across a problem, in that we cannot get insurance!

The cottage is in a flood risk area, but that is the rest of the village too! There are lots of holiday lets in the area, so presumably they all have cover.

We have asked the agency we are going to use, who don't know! We have emailed a few cottage owners but they haven't got back to us yet.

We could go for insurance without flood cover, but I don't really want to do that.

Does anyone have any bright ideas/ experience please? Thanks.

[newtimber]

I really wouldn't buy a holiday let in a flood risk area. One flood could destroy your business and your reputation and you'd end up losing your FHL tax status for not having enough bookings.

I think that businesses (which a holiday let counts as) don't benefit from the same insurance deals that residents do.

[Hells Bells]

This has been discussed on here before and I'm sure owner did get insurance. I'll try and find the info.

[Hells Bells]

viewtopic.php?t=25398&postdays=0&postor ... d&start=15

[Casscat]

You could find out from the vendors who currently insures and approach them. They could decline of course as they may be grateful to get the risk off their books, but attempting to continue the existing cover is likely to offer more chance of success than trying for fresh cover from a new insurer.

[loveka]

Thanks so much for that link.

What is so frustrating is that there are lots of holiday lets that share our postcode. I can only think they don't have flood insurance in place.

We have just heard from one who will do it for £600 a year. But we would have to pay Council Tax rather than business rates, which would cost an extra 1.5k a year.

Feeling very confused now!

[loveka]

And have tried the vendors insurers. They won't do holiday lets!

[Ecosse]

Is your property in a genuine flood risk area, or just one deemed to be by someone sitting in an insurance office? I ask that because I struggled to get insurance for my residential house in Scotland because it was deemed to be 50m from a river known to flood, but in reality, had a flood risk of zero as the river that flooded was 30m in altitude below us. I couldn't win with that insurance company, but with a bit of shopping around, I found another with more pragmatic criteria.

If it is genuinely in a flood zone, I agree with newtimber... do not buy... others may have been able to get insurance, but perhaps that is to do with when they bought their policy, or that they are in the only bit in the area that doesn't flood regularly, or the likes. It might be upsetting to miss out on a property that your keen on in the short term, but you may be saving yourself a lot of heartache in the long term.

[greenbarn]

We have just heard from one who will do it for £600 a year. But we would have to pay Council Tax rather than business rates, which would cost an extra 1.5k a year.

Am I understanding this wrongly, or are the insurers offering to provide cover if you are prepared to be dishonest about the use of the property and state that it's domestic?
How would that stand up if you had to make a claim?

Have you tried the usual insurers specialising in holiday lets - NFU, Schofields, Boshers etc?

[loveka]

Gosh, yes I suppose they are. I hadn't thought of that.

Yes, we have tried those. As soon as we give the postcode it's a big fat no.

[loveka]

And yes, maybe we should pull out. However, it doesn't flood regularly- last time was 1993 and there was no damage to property, just carpets. Since then the council have put in flood defence. It is a real tourist village full of holiday lets. So is it a big flood zone? I don't really know, but I don't think I would be happy not having cover.

I just don't know what to do for the best now.

[ManxRed1]

Hi loveka,

Did you try the broker I suggested? At my last renewal in May they offered me two policies, one with and one without.

Since the flood defence tunnel was put in there have been no floods to my knowledge.

[loveka]

Hi yes, we have tried everywhere. It is a total nightmare, we might have to pull out. Thanks for your help though.

[zebedee]

It's not just building / contents insurance that you need, but the Public Liability Certificate. To the best of my knowledge you will only get this via specialist holiday letting insurance.

Discuss with the brokers the implications of the PL as you could be very vulnerable if you don't have the cover and a claim is made against you.
You would not be able to get Visit England grading without it either, if that is the route you want to go down.

[windrush]

Our cottage was in a flood risk area and did actually flood, badly, in 2007. This was Bourton-on-the-Water. We were insured with the Halifax and had no problems claiming for the flood and they continued to insure us thereafter so maybe worth approaching them.