Publication of 'flood maps' could make some properties harder to insure or sell, warns industry

The Environment Agency (EA) is legally obliged to make the first official maps showing areas at risk of surface water flooding available on its website by the start of December. The Statement of Principles agreement between the Government and Association of British Insurers (ABI) is to come to an end.

"When people are selling their properties buyers, estate agents and solicitors will use these maps to see the risk," Mary Dhonau, chair of industry body the Flood Protection Association, told The Times (subscription required). "It will make some properties harder to sell."

The EA has warned of an increased likelihood of flooding this winter, particularly in the west of England. Wet weather and strong winds coinciding with high tides, combined with wind-blown leaves and debris blocking rivers and drains, are expected to increase flood risk, it said in a statement last week.

Under the Flood Risk Regulations, the EA must produce and publish flood hazard and flood risk maps. It will produce hazard maps to cover low, medium and high probability scenarios; which must include the flood extent, water depths or levels and likely water flow. The risk maps will set out the potential adverse consequences of floods, including the types of economic activity that will likely be affected.

Although the EA currently publishes flood maps, these only cover the risks of flooding from rivers and seas. Surface water flooding, which is usually caused by heavy rainfall that cannot drain due to blockages or insufficient infrastructure to cope with the volume of water, tends to be much less obvious. However, the new maps will enable anyone, including insurers and prospective buyers, to check the flood risk of any area by typing in its postcode.

"[The maps] are not property specific and it could be that the flood risk shown affects properties down the road rather than your one," said Dhonau.

The insurance industry has pledged to continue to offer flood cover to existing customers where the risk is not "significant" or where the Government has announced plans to reduce the property's flood risk within five years. This Statement of Principles was designed as a temporary measure, but the ABI recently announced that it had signed a Memorandum of Understanding with the Government to extend the scheme until a new Flood Re scheme, currently planned for summer 2015, is established.

Flood Re is due to be established by the Water Bill and is intended to provide certainty to householders by capping flood insurance premiums, based on the council tax band of the property. An industry-backed levy, payable by all UK household insurers, would be used to fund claims made by people in homes at high risk of flooding. This levy would be passed back to customers, resulting in an estimated levy of £10.50 on annual household premiums. However, commercial property and high-value homes would not be covered by the scheme.