You are here: Home - Better Business - Business Skills -

Flood risk: Buying with confidence – Esurv

by: Richard Sexton, business development director, Esurv
  • 18/10/2016
  • 0
Flood risk: Buying with confidence – Esurv
Richard Sexton weighs up recent suggestions from the Association of British Insurers on how to tackle the flood risks faced by potential homebuyers.

The Association of British Insurers has relaunched a proposal it previously floated (pun intended) last year. The group represents the organisations who have to put their hands in their pockets should a property suffer damage as a result of flooding; a scenario likely to be in the news again shortly as we move into the winter months.

To be fair, the organisation has made positive steps to address not only its members’ own commercial interests, but also those of the public who may be increasingly blighted by this issue. For example, launching the not-for-profit Flood Re scheme, in April this year. The scheme helps those facing perceived higher risk maintain access to affordable insurance.

On the face of it, the latest idea is not a bad one, either. According to the ABI, only 28% of purchasers research flood risk before buying. Why not, therefore, add a ‘traffic light’ style logo to all property sales details indicating the level of flood risk? It’s a nice concept, but the last time I was waiting at a red light, I understood that to mean ‘under no circumstances proceed’, whereas green, if I recall correctly, means ‘proceed with confidence’.

Neither of these directives could or should be fully relied on by purchasers in this scenario and, consequently, agents and intermediaries will be left having to do their best to explain matters to prevent deals from sinking unnecessarily. Lenders are increasingly turning to surveyors for advice on this topic, who can combine local knowledge with access to detailed objective risk data. That seems like friendlier shore to steer for, longer term.

There are 0 Comment(s)

You may also be interested in

Business Skills

In this section, we offer short ‘how to’ guides on harder to crack areas of business. From social media, to regulation or niche product areas, we cover it all.


Our journalists interview key industry entrepreneurs, strategists and commentators for day-to-day market insight and a strategic view of where the industry is heading. We offer lessons for success and explore the opportunities for your business

Success in Practice

Here, we share case studies fleshing out best practice to help you decide what could work for your business. Take a look at how others approached complex tasks like launching a new mortgage lender, advising on a new product area or deciding to specialise in another. Learn from others mistakes and triumphs.


Each week, we ask top mortgage and property commentators with a unique perspective to examine a key news headline, market move or regulatory or political issue.


Vote in our weekly poll here. It’s your chance to tell us what you think and be heard on the top news stories of the week. Review our archive to find out what your industry really thinks and all our coverage of the results.

Top Comments

Be part of the conversation on Mortgage Solutions. We want to hear from you. We have a tool called Disqus to tell us which stories get the most comments each week. Every Friday, the team picks the most thoughtful or opinionated contributions from our readers to enjoy again. Don’t forget to share your favourite stories from the site on social media to keep the conversation going.
Read previous post:
headshot of Foundation Home Loan's Jeff Knight
Top qualities of effective leadership – Jeff Knight

Pepper Homeloans' Jeff Knight discusses the most important attributes in a good leader, and how they can be applied to...