New Research Highlights The Need For Increased Flood Planning

25/09/2017

On 20th September 2017, the government launched an extensive investigation into the chances of many different locations in England being flooded at the same time. In addition, the report looked into the possibility of widespread flooding scenarios for national planning purposes .(1)

The report set out to answer three core questions which have been raised following floods in recent years:

• Why do floods commonly described as having a likelihood of 1 in 100 seem to occur more often when viewed nationally?           

• What are the chances that many different locations will be affected by severe flooding around the same time?          

• What are rare but plausible (reasonable worst case) widespread flooding scenarios for national planning purposes?

In answering these questions, the Environment Agency aims to 

“allow central government, emergency planners and responders to review their planning assumptions, emergency response, and mutual aid capabilities, to increase the England and Wales preparedness for widespread flooding.”

Is flooding is becoming more common?

A decade ago, in 2007, inland flooding affected over 55,000 homes and businesses.  It was the worst flooding seen in 60 years.

The winter of 2016 comprised of the most extreme flooding ever recorded in parts of the UK.  Gales and heavy rain swept across large parts of the UK, causing devastating flooding in Cumbria and Lancashire, as well as parts of southern Scotland.  Storm Desmond resulted in the wettest November, December, and January since 1910.

Do such extreme flooding events indicate a connection with greater rainfall and climate change?

According to the Natural Environment Research Council (NERC), the UK has become significantly warmer over the past few decades[2].  Warmer atmospheres create more moisture; however, increased rainfall does not necessarily correspond with a greater risk of flooding. 

In an article entitled, Is Climate Change Causing More UK Floods? Nick Reynard states:

“Our data does show that, aside from climate change, the UK has always experienced clusters of flooding events in certain periods. But it also shows that warmer temperatures might be making these periods more likely and more severe[3]”.

Despite undertaking extensive work in collaboration with Oxford University, the NERC could not conclusively state that man-made climate change was responsible for recent flooding events.

If clusters of extreme flooding are part and parcel of the environment in Britain, home owners, business owners, and insurers need as much information as possible to protect themselves from the personal and financial consequences of flood damage.

This is the aim of the recently released report from the Environment Agency.

Key findings of the report

The report made the following findings/ implementations:

• the National Risk Register now includes a new risk on widespread surface water flooding over a major city         

• the existing widespread river flooding scenario has been improved and provides a stretching, yet plausible planning assumption for national emergencies          

• heavy rain overwhelming drainage systems is a major cause of widespread surface flooding          

• people and business owners tend to be less aware and fail to take precautions in relation to surface flooding, which can occur away from rivers and the coast          

• although weather reporting methods have improved, it is difficult to predict where local rainfall will occur making it difficult for preparations to be made to protect homes and businesses

Improved small business flood insurance cover

At the end of 2016, small businesses were provided with significant relief from the stress of potential flood damage through a new flood insurance package developed by the British Insurance Brokers’ Association (BIBA).

In April 2016, the FloodRe was launched for residential homeowners, designed to provide access to cost-effective flood-damage cover.  However, commercial entities, including buy-to-let property owners, were excluded from the scheme.

Unlike FloodRe, the BIBA scheme has no connection with the government and is not backed by a levy.  A panel of four insurance companies underwrite the policies and carefully evaluate the flood risk of a particular business, pricing the policy accordingly.  Insurers consult detailed flood maps when evaluating the risk as are the extent of flood resilience and resistance methods that have been installed in the area.

The insurance covers property as well as business interruption and theft, in the same way as traditional commercial policies do. It also offers an “excess buyback” which is a chance for customers to pay a higher premium in exchange for a lower excess. The scheme is aimed at businesses with up to 500 employees and is also offered to landlords.

In summary

Although the evidence regarding climate change and an increase in flooding, the evidence remains inconclusive.  However, there is no doubt that flood damage can be catastrophic for SMEs.  By taking advantage of the BIBA scheme and applying pressure on local bodies to increase flood planning and protection, businesses can avoid major economic loss due to flooding.

Something worth thinking about as winter fast approaches.

Fisher Scoggins Waters, are a London based law firm specialising  in construction, manufacturing, and engineering law.  If you would like more information on disputed flood insurance claims and/or emergency response following a flood, please phone us on 0207 993 6960.