New flood protections for homeowners will make the conveyancing process more complex, solicitors have been warned.
Re, a national scheme to support households at the highest risk of
flooding, went live today following authorisation last week by the
Prudential Regulatory Authority and Financial Conduct Authority.
Search provider SearchFlow warned that not all properties would be
eligible to benefit from the not-for-profit scheme, ‘and due to the
detailed criteria defining whether your property qualifies, it is now a
lot less clear throughout the conveyancing process as to how to
Only ‘interpreter’ flood reports flagging potential
eligibility for Flood Re would ‘sufficiently’ protect homebuyers, the
search provider warned.
Managing director Greg Bryce 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 homebuying process.
‘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.’
published by the Department for Environment, Food and Rural Affairs
states that Flood Re will be a not-for-profit reinsurance body ‘run and
managed by the insurance industry’.
Insurers will maintain a
‘direct relationship’ with their customers, with policyholders paying
premiums and making claims directly to the insurer.
Read more here: http://www.lawgazette.co.uk/law/new-flood-protections-give-rise-to-conveyancing-fears/5054551.fullarticle