With increasingly unpredictable weather and more frequent extreme rainfall, flooding has become a serious risk – especially for construction projects in vulnerable areas. But what happens if your site floods during development? Will insurance cover the damage, or are you left footing the bill?
If you’re managing a build, here’s what you need to know about flood risk, insurance cover, and how to protect your investment from water-related setbacks.
Flooding and Construction Sites: A Growing Risk
Construction sites are naturally vulnerable to the elements. When ground is excavated, drainage is disrupted, or structures are incomplete, even moderate rainfall can lead to pooling, surface water flooding, or damage to materials and equipment.
According to the Environment Agency, over 5.2 million properties in England are at risk of flooding, and that number is expected to rise with climate change. New developments in low-lying areas, near rivers or coastlines, or in locations with poor drainage are especially exposed.
If your site floods during construction, it could lead to:
- Water damage to unfinished structures
- Loss or damage to tools, plant, and materials
- Delays and extra costs to remove water, dry out the site, and make repairs
- Disruption to timelines, contracts, and labour
Does Insurance Cover Flood Damage During Construction?
Yes, but only if you have the right policy in place.
The key cover you need is Contract Works Insurance (also known as Contractors All Risk Insurance). This type of policy is designed to protect construction projects while they’re in progress, and it typically includes protection against events such as:
- Fire
- Theft
- Vandalism
- Storms
- Flooding
Contract Works Insurance will usually cover:
- Damage to the structure under construction
- Cost of removing debris and repairing flood damage
- Replacement of materials that have been lost or ruined
- Delays and disruption to the build, depending on the policy wording
Flood cover is not always included as standard, especially if your site is in a known high-risk area. At Construction Insure, we make sure your policy includes appropriate flood protection based on the location and type of development, so you’re not left exposed.
Other Insurance to Consider
Plant and Equipment Insurance
Floodwater can cause major damage to machinery and tools. If you use hired-in plant or own heavy equipment, make sure your policy includes cover for water damage, not just theft or fire.
Site Materials Cover
Building materials stored on-site are particularly vulnerable to flooding. Depending on your policy, you may need to request specific cover for stored materials or ensure they’re kept securely and protected from the elements.
Public Liability Insurance
If floodwaters from your site damage nearby properties or public areas due to blocked drainage or soil movement, you could be held liable. Public liability insurance may cover such claims, but it’s important to confirm the details.
What About Unoccupied Properties or Partially Completed Builds?
If you’re developing a property that’s temporarily unoccupied or only partially built, make sure your cover reflects that. Standard buildings insurance usually doesn’t protect against flood damage when the property is unoccupied, unless it’s specifically added.
Flood risk can also affect your ability to secure affordable cover once construction is complete, especially in flood-prone areas.
How to Protect Your Site from Flood Risk
Insurance is essential, but prevention also plays a major role. Consider these steps:
- Check Environment Agency flood maps before choosing a site
- Use temporary drainage and water management systems
- Store materials off the ground and under secure cover
- Avoid leaving tools or plant in low-lying areas
- Review and confirm insurance before construction begins
Let Construction Insure Help You Stay Protected
At Construction Insure, we work with builders, contractors, and developers on all types of projects, including those exposed to higher flood risks. We offer advice and insurance solutions tailored to construction sites at every stage.
We can help you with:
- Contract Works Insurance with flood cover
- Tools, plant, and material protection
- Liability cover for flood-related claims
- Unoccupied property insurance
We’ll walk you through your options, explain your cover clearly, and make sure you’re properly protected from the ground up.
Need to protect your site from flooding risks?
Contact Construction Insure today for expert advice and a competitive quote.