Law Society practice note on flood risk updated

The Law Society issued a revised version of its practice note on flood risk on 18 December 2014. The instructions to practitioners are largely unchanged. Most of the revisions reflect the new flood maps issued by the Environment Agency in December 2013 and the continuing discussions about the Flood Reinsurance scheme (Flood Re). (See Legal updates, Environment Agency publishes improved flood maps, Detailed analysis of Flood Re consultation and Flood Re: the next steps.)

The note refers to the exclusion of Band H homes from Flood Re (which was the original plan). However, on 18 December 2014 the government announced that Band H properties would now be eligible for Flood Re (paragraph 107, Government response to the public consultation on the Flood Reinsurance Scheme Regulations).

The practice note still says that solicitors should (before their client enters into a binding commitment to buy lease or finance property) consider advising the client to check out the terms on which it can get flood insurance cover and to discuss the flood risk profile of the property with a surveyor or other flood consultant. Where appropriate the solicitor may also wish to discuss whether the client is doing its own investigations into the flood risk of the property and this may lead to making further enquiries, for example, by doing a flood search.

The practice note still warns that flooding of many different types can present significant risk to many properties. It also now refers to Flood Re and the fact that several categories of property will not be eligible to benefit from its controlled pricing for flood insurance (for more details see Practice note, Flood Risk Searches: Different types of flooding and Legal update, Detailed analysis of Flood Re consultation). Finding out about flood risk is important. The practice note continues to remind solicitors that reliance on the Environment Agency risk maps alone (even the new ones) is not enough, giving some detail as to why. For more information on the limitations of these maps see Practice note, Flood Risk Searches: Alternatives to carrying out a flood search: Free flood maps available on the Environment Agency website).

The practice note gives some guidance on other sources of information on flood risk which a client could request its solicitor to commission. These sections have been changed only in minor ways.

Source: Law Society: Practice note: Flood risk (18 December 2014).