Flood dispute could make commercial landlords suffer

by Property118.com News Team

10:47 AM, 7th March 2012
About 7 years ago

Flood dispute could make commercial landlords suffer

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Flood dispute could make commercial landlords suffer

Commercial landlords could find their properties are without insurance in a few months if the Government fails to provide the flood protection insurance companies expect.

The current agreement runs until July, and the Government’s cuts are hitting flood defences. As a result, premiums will increase and some properties are being quoted with insurance of £20,000 a year.

With insurers still unhappy, some landlords will have trouble finding any insurance at all as some cover could be withdrawn completely. This will have a negative effect on the values of the buildings, as well the threat of breaching mortgage contract.

Jonathan Hackett, Client Development Director at property insurance specialist Cadogan Keelan Westall explains: “Flood protection has to be a national priority for the Government as there are potentially thousands of commercial properties and businesses at risk.

“Property owners in flood-prone areas may find their properties very difficult to insure later this year and face the potential of very high premiums, significant reductions in value and less access to mortgage finance. What is more worrying is that property owners may also face the potential danger of action taken by the mortgage lender due to breach of the mortgage agreement. Unless the Government acts quickly to increase the investment in flood prevention, the long term prospects of properties at risk is very worrying.”



Comments

2:48 AM, 8th March 2012
About 7 years ago

If you can't obtain property insurance for  your property or it is really expensive then  it is effectively valueless.
Did you not carry out DD before you purchased?
Silly you!
Anyone looking to purchase call up Aviva, they have the best database for flood risk.
If they will cover you then you are OK.
If not walk away as the property is valueless apart from ongoing rent.
You face total loss though if it ever gets flooded.
I would NOT buy or have anything to do with any property that AVIVA won't insure.


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