RMS To Help With Better U.K. Flood Maps

Risk Management Solutions catastrophe modeling firm in London said it has partnered with a digital mapping firm to give home buyers more accurate information about the likelihood of getting insurance.

The firm said Landmark Information Group, which reports environmental risks to the property industry, will now incorporate the latest RMS flood mapping data it into its analysis for homebuyers and legal solicitors.

The U.K. Flood Risk Assessment maps cover all sources of flood risk, including surface water and minor river flooding, which is believed to have caused around 50 percent of the damage from the 2007 summer floods, RMS said.

It noted that until now, the reports have just included data from the Government's Environment Agency, which is currently only responsible for major river flood risk.

According to the Environment Agency maps, less than 10 percent of England and Wales is at risk of flooding, while RMS estimates this figure to be almost 30 percent--the majority of this additional risk being from excessive rainfall and minor rivers overflowing.

In an analysis of property exposures, RMS estimates that one in four British homes are at flood risk.

The Landmark reports, RMS said, will include an assessment of the risk of a property flooding from an event that happens on average once every 75 years, compared to once in every 100 years using Environment Agency data.

The firm said this means home buyers will know before they buy a property whether or not they will get buildings insurance--and even a mortgage--since the Association of British Insurers (ABI) made an agreement that insurers will provide coverage for properties protected up to this 75-year return period level.

An analysis of the areas flooded in 2007 shows that in the municipality of Hull, for example, RMS correctly identified some 15 times more properties that would make insurance claims than the Environment Agency.

Matthew Grant, global head of client development at RMS, which has been modeling all sources of flood risk since 2001, said in a statement: "The 2007 floods provided a stark reminder that major river flooding is just one part of the full flood risk picture, and a much more comprehensive view is needed."

He added that "by having the metrics to assess the true flood risk facing a property, home buyers can ensure they pay a fair price, secure insurance coverage and decide if they need to invest in flood defenses."

"The inclusion of this new, cutting-edge flood data represents a major advancement in our property risk assessments," commented James Sherwood-Rogers, managing director at Landmark.

"As there is no requirement to include flood assessments in the Government's Home Information Packs, home buyers would otherwise be in the dark about the true risks facing a property. These new reports will furnish them with the information needed to assess properties and negotiate on transactions."