Around one in five properties is at risk of surface water or flash flooding[i]. Knowing where basements exist is critical, explains Caroline Elliott-Grey, senior product manager, U.K. and Ireland, for LexisNexis Risk Solutions.
Having emerged from of one of the wettest winters on record[ii], research indicates that property insurance providers and their customers should remain vigilant as 24%[iii] of flood claims occur in July and August, according to Aviva claims data.
With one in five[iv] (19%) properties at risk from surface water or flash flooding, insurance providers are working hard to consider the policyholders most at risk – often those living in basement properties.
Particularly in urban areas, the creeping disappearance of gardens towards an environment dominated by impermeable surfaces leaves rainwater with nowhere to go, at risk of deluge into homes and businesses on the lower ground floor. This happened with devastating results in the summer of 2021, when parts of London received more than twice the average monthly rainfall in just two hours[v]. The following year, the Mayor of London wrote to the 45,000[vi] residents of basement properties in the capital to warn they are at risk of extreme flooding.
An exacerbating factor is the advent of ‘mega basements.’ From home cinemas to gyms, these so-called ‘iceberg homes’ often store high-value possessions, leading to significant losses in the event of flash floods and prolonged periods of rain. Such conditions can cause groundwater flooding, with water seeping into cellars or basements. Therefore, it is easy to see the benefit of knowing where basements are located to make an accurate assessment of environmental risk.
Insurance professionals can now access basement indicators; not just at the point of quote to support pricing accuracy, but throughout the lifetime of a policy itself. When combined with live flood data updated every 15 minutes, this information can inform underwriting teams of the risks of flooding when a new policy is being quoted.
LexisNexis® Basements Indicator combines multiple data sources to create a unique attribute that helps property insurance providers identify whether a basement or an underground level may be present in a home or a commercial building.
With the risks of flash-flooding in the summer months an on-going challenge, insurance providers can now turn to data for a picture of what lies beneath ground level to help protect customers and mitigate future losses.
Content provided by LexisNexis Risk Solutions.
[i] https://www.aviva.com/newsroom/news-releases/2024/06/increase-in-floods-during-summer-months-analysis-reveals/
[ii] https://www.metoffice.gov.uk/binaries/content/assets/metofficegovuk/pdf/weather/learn-about/uk-past-events/summaries/uk_climate_summary_winter_2024.pdf
[iii] https://www.aviva.com/newsroom/news-releases/2024/06/increase-in-floods-during-summer-months-analysis-reveals/
[iv] https://www.aviva.com/newsroom/news-releases/2024/06/increase-in-floods-during-summer-months-analysis-reveals/
[v] https://nic.org.uk/studies-reports/reducing-the-risks-of-surface-water-flooding/surface-water-flooding-final-report/
[vi] https://www.london.gov.uk/press-releases/mayoral/mayor-warns-londoners-in-basements-about-flooding#:~:text=As%20the%20risk%20of%20flash,the%20event%20of%20a%20flood.
