Conveyancers are concerned that Flood Re, the government arranged re-insurance scheme that has launched today to support those hit by floods, is confusing the valuation process.
Conveyancers are concerned that Flood Re, the government arranged re-insurance scheme that has launched today to support those hit by floods, is confusing the valuation process.
Research published by SearchFlow suggests that the scheme, while welcome, has introduced grey areas for conveyancers because of the added layer of complexity when assessing if a home is covered.
Greg Bryce, managing director of SearchFlow, said: “Whilst the Flood Re scheme will offer much needed protection to homebuyers purchasing properties in flood risk areas, it has certainly added another layer of complexity to the home-buying process.
“This initiative has sharpened the industry’s focus on flood risk assessment prior to a property transaction.
“It is now very important that we provide flood reports that define the potential to cede properties into Flood Re and outline clear guidance on what it means for the homebuyer and their insurance availability.”
Bryce said only interpreted flood reports flagging potential eligibility for Flood Re will sufficiently protect homebuyers.
He said that environmental reports, such as those provided by Argyll Environmental, which identify properties that could potentially qualify for the Flood Re protection and how to proceed in light of the new changes, will help ensure conveyancers fulfil their due-diligence and consumers are best protected.
Chris Loaring, head of consultancy and customer services at Landmark Information Group which owns Argyll Environment, added: “High quality suppliers should present an interpreted and pragmatic professional opinion on the data used within their search, alongside an explanation and guidance on Flood Re.”
