Flood defences save UK households £1.15bn in damages each year

Flood defences prevent £1.15bn in UK residential property damage every year, according to new analysis by flood risk intelligence firm Fathom. The review, commissioned by Flood Re, a joint initiative between the UK Government and the insurance industry, investigates the value of flood protection to households in the UK.

Six of the wettest years on record in the UK have occurred since 1998, and recent storms – including Babet, Ciaran and Debi – have led to £570m in insurance payouts. According to the research, annual flood losses to households would be 2.8 x higher without current levels of flood protection.

Using Fathom’s Global Flood Cat model, researchers simulated 10,000 years of flood events under two scenarios, one with flood defences and one without. Key findings include:

• Average annual losses (AAL) for residential buildings with flood defences: £640m
• AAL without defences: £1.79bn (64% increase)
• 0.5% annual exceedance probability (AEP)/probable maximum loss without flood defences: £21.2bn, £13.2bn higher than with defences.

The analysis covered England, Scotland, Wales and Northern Ireland, for fluvial (river) and pluvial (rain/surface) flooding. Damages from coastal flooding and the rising cost of temporary accommodation were not included.

Dr Oliver Wing, Chief Scientific Officer, Fathom, said:

“The value of flood defences to UK households is unequivocal, saving them more than £1bn combined each year on average and up to £13bn during very severe floods. As our nation’s infrastructure ages, rebuild costs balloon and climate change fuels ever more intense flood events, funding the maintenance and expansion of the UK’s flood protection systems has never been more critical.”

Dermot Kehoe, Director of Communications and Transition, Flood Re, said:

“The UK needs long-term flood defence investment of at least £1 billion a year to ensure we protect our homes and businesses from the devastation flooding brings. We must continue to mitigate the damage caused by flooding to ensure the insurance market has the ability to provide affordable cover to those at risk. Flood Re remains committed to working with Government, insurers and communities to drive forward flood resilience. By prioritising resilience alongside protection, we can build a future where homes, businesses and local economies are not just defended against flooding, but prepared to withstand and recover from it.”

Hannah Gurga, Director General, Association of British Insurers, said: 

“Insurers continue to be at the forefront of climate change, paying out a record £585 million in claims last year to help households recover from extreme weather events. If we’re going to protect communities across the country with climate-resilient properties, we must shift from reactive and remedial action to a greater focus on prevention. Adequate and long-term Government investment in maintaining and strengthening our flood defences is essential and we hope to see the Government commit to this within its Spending Review.”

Notes:

The figures are for inland flood damage to residential properties alone, and do not include damages to businesses, industry or agriculture. The results are for England, Scotland, Wales and Northern Ireland, and include both fluvial (river) and pluvial (rain/surface) flooding. They do not include the cost of damages from coastal flooding, or the cost of temporary alternative accommodation, which has skyrocketed in recent years owing to shortages of short-term housing.

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