Flood insurance—overview of the market
Produced in partnership with Argyll Environmental and Burges Salmon
Flood insurance—overview of the market

The following Environment guidance note Produced in partnership with Argyll Environmental and Burges Salmon provides comprehensive and up to date legal information covering:

  • Flood insurance—overview of the market
  • Brexit impact
  • Introduction to flood insurance
  • Flood insurance
  • Insurance market
  • Obtaining flood insurance

Brexit impact

As of exit day (31 January 2020) the UK is no longer an EU Member State. However, in accordance with the Withdrawal Agreement, the UK has entered an implementation period, during which it continues to be subject to EU law. This has an impact on this content.

For further guidance, see Practice Note: Brexit—impact on environmental law and News Analysis: Brexit Bulletin—key updates, research tips and resources.

Introduction to flood insurance

The property, legal and financial markets are becoming increasingly sensitive to flooding and flood risk as the cost of flood damage continues to escalate.

Flood insurance plays a crucial role in the management of financial losses associated with flood damage. The Council of Mortgage Lenders explains that flood insurance costs may affect mortgage affordability and the amount that a lender might lend. Properties may become un-mortgageable if the cost of insurance becomes prohibitive. Similarly, most commercial lending agreements require fully comprehensive insurance.

Where a property is not mortgageable, there may be difficulty when selling the property in the future. Failure to appreciate the escalating costs of flood insurance premiums in high risk areas can have serious consequences for those who own property in these areas.

Flood insurance


Flood insurance will typically provide different aspects of cover depending on the policy in place and whether the