North Strand - Flood risk and home insurance

Rowley Birkin QC

We're sale agreed on a nicely renovated property in North Strand. Have been working through the process of closing and have come to the stage of getting home insurance quotes as part of the mortgage agreement.

Most of the big providers have refused to quote on the basis of flood risk and/or the fact that the house is 100+ years old. The house itself hasn't flooded before but the area is a risk.

We have found some providers who will insure the property but it has raised serious doubts with us in terms of reselling the property in a few years time. This isn't house that we want to live in forever, at max the next 4-5 years so we figure that it if it's an issue for us, it'll be an issue for the next people.

Any thoughts/input welcome. Thanks for reading.

RasTa

Yeah I've a friend who almost went sale agreed on a house around that area but pulled out due to not being able to get any insurance quotes.

It will definitely affect the re-sale value of the house if you're looking to move within that time frame.

He settled for Fairview in the end where there are no issues with insurance.

sapper

This is a scenario that happens a lot - it's happened to me and recently my parents too. Unfortunately there is no onus on the seller or their EA to flag that their house is not insurable for flooding and unless you are on the ball and call around yourselves when bidding you won't find out about it until the last minute.

In general people don't buy houses like this - you should assume that if you were to secure insurance somewhere and buy it, you would have a hard time selling it down the line.

And perhaps more importantly there is the risk that it would be flooded. It's probably hard at this late stage but I would say you have to pull out.

sapper

Btw search around on this forum and you'll find loads of posts on this kind of scenario

Rowley Birkin QC

Thanks Sapper.

Our big fear is being stuck with it in a few years time due to the insurance difficulties putting off potential buyers. That said, in less than 24 hours we had a quote which would cover the property and allow us to proceed.

I suppose a big part of it is that this is by far the nicest property in our budget that is close to work, good BER etc. Part of me wants to take the gamble given that we were able to sort out cover so quickly, albeit through a broker.

I've gone back through my solicitor this morning to find out if any measures were put in place to mitigate against flooding, specifically water rising through sewer pipes. There was a new concrete slab laid when the house was being renovated so it's possible they did carry out this work.

RasTa

Rowley Birkin QC wrote: »

Thanks Sapper.

Our big fear is being stuck with it in a few years time due to the insurance difficulties putting off potential buyers. That said, in less than 24 hours we had a quote which would cover the property and allow us to proceed.

I suppose a big part of it is that this is by far the nicest property in our budget that is close to work, good BER etc. Part of me wants to take the gamble given that we were able to sort out cover so quickly, albeit through a broker.

I've gone back through my solicitor this morning to find out if any measures were put in place to mitigate against flooding, specifically water rising through sewer pipes. There was a new concrete slab laid when the house was being renovated so it's possible they did carry out this work.

I'm guessing you already know why it's the nicest property for your budget

If something big happens that way in the next few years then bye bye to re-sell and you're stuck with the property.

Although the last food that did damage to property was back in 2002

Ask yourself do you really need to buy the property if you intend to move in 5 years time.

Rowley Birkin QC

Little update; We called in to the next door neighbours and had a chat with them about flood risk etc. They were super helpful and told us that their insurer wouldn't cover the flood risk for the first few years they lived there.

Last year, their insurers pro-actively contacted them and said that due to the flood prevention works carried out by the OPW in recent years, they are happy to remove the flood risk attached to the property.

mcdonut

Hi ,which insurance company did you go through for the insurance quote?
Thanks

Rowley Birkin QC wrote: »

Little update; We called in to the next door neighbours and had a chat with them about flood risk etc. They were super helpful and told us that their insurer wouldn't cover the flood risk for the first few years they lived there.

Last year, their insurers pro-actively contacted them and said that due to the flood prevention works carried out by the OPW in recent years, they are happy to remove the flood risk attached to the property.

frash

What road in North Strand is it?

I used to live & own on Strandville Ave and insurance was never an issue.
Nor was flooding for that matter (when I lived there at least)

Rowley Birkin QC

mcdonut wrote: »

Hi ,which insurance company did you go through for the insurance quote?
Thanks

AA Home insurance. Actually on the phone with them now and all looking good.

Rowley Birkin QC

frash wrote: »

What road in North Strand is it?

I used to live & own on Strandville Ave and insurance was never an issue.
Nor was flooding for that matter (when I lived there at least)

James St. North. Any info you have (Post or PM) would be really appreciated.

frash

Rowley Birkin QC wrote: »

James St. North. Any info you have (Post or PM) would be really appreciated.

I suppose you're that bit closer to the Tolka than we were.
Shouldn't make that much difference though.

Fairly sure our house insurance was with FBD back then as they had some deal on at the time.

Uno my Uno.

Rowley Birkin QC wrote: »

We're sale agreed on a nicely renovated property in North Strand. Have been working through the process of closing and have come to the stage of getting home insurance quotes as part of the mortgage agreement.

Most of the big providers have refused to quote on the basis of flood risk and/or the fact that the house is 100+ years old. The house itself hasn't flooded before but the area is a risk.

We have found some providers who will insure the property but it has raised serious doubts with us in terms of reselling the property in a few years time. This isn't house that we want to live in forever, at max the next 4-5 years so we figure that it if it's an issue for us, it'll be an issue for the next people.

Any thoughts/input welcome. Thanks for reading.

Remember that the day you buy is the day you sell. If you are having difficulties gettign cover and a Mortgage as a result then it will probably be the same for whoever you want to sell to when the time comes.

wicklow_hunter

Hi,
I've been in a similar situation / buying flood risk property. If its good stock it will be snapped up. I lost out on two properties because I doodled around and started asking questions with regard to insurance. There is always a strong appetite for property close to rivers & seaside. If u like it just buy it. Be prepared to pay a little more for insurance tho. Best of luck !

Rowley Birkin QC

Uno my Uno. wrote: »

Remember that the day you buy is the day you sell. If you are having difficulties gettign cover and a Mortgage as a result then it will probably be the same for whoever you want to sell to when the time comes.

There was no issue with mortgage, just with getting flood insurance. All sorted now though through the aa, all risks covere for a very favourable price.

Think_then_talk

The Last Time That road Flooded. Photo>> http://irishphotoarchive.photoshelter.com/image/I00003zTMkraxklQ

Since then a lot of work has been done...

oneillers

Rowley Birkin QC wrote: »

Uno my Uno. wrote: »

Remember that the day you buy is the day you sell. If you are having difficulties gettign cover and a Mortgage as a result then it will probably be the same for whoever you want to sell to when the time comes.

There was no issue with mortgage, just with getting flood insurance. All sorted now though through the aa, all risks covere for a very favourable price.

Hi all/Rowley Birkin QC,

Firstly I wanted to say thanks as I have found this thread very useful as I am looking to buy a property in the North Starnd area and am having difficulty securing all risks cover with Flood insurance. I have been to a Broker and they said 15 underwirters declined to give cover due to the property being in a blanket flood risk area. And I have spoken to the AA (on the basis of these posts) and they have offered all risks excluding flood, which I will need to get things sorted with the bank. I have also been on to OPW, Paschal Donoghue's Office and Dublin City Council to get supporting documents about the flood defenses that have been put into the Tolka and I haven't gotten anything that would be particularly helpful for the insurance companies. Would anyone have any tips or advice please?

Thanks in advance

REFLINE1

Take the time to read through the information below- should give you an idea of where defence schemes have been completed and which one's are credited by Insurance companies.

http://www.opw.ie/en/completed/

http://www.opw.ie/en/media/MoU IIF-OPW 20140324 V1-2.pdf

http://maps.opw.ie/defended_areas/map/

oneillers

Brilliant - thanks so much for this. I will send this on to the AA and other insurance companies and see what they come back with. Thanks again

REFLINE1

oneillers wrote: »

Brilliant - thanks so much for this. I will send this on to the AA and other insurance companies and see what they come back with. Thanks again

Tbh your best do a bit of homework yourself first, ie use the map function to identify your house, and establish if it is in a protected zone.
I would screenshot that and include in any correspondence.
Also read the memorandum and then you will be better informed to ask specific questions off the insurers and there's less chance youll be fobbed off with some waffle.
GL.

frash

What road is the house on oneillers?