The government has now passed a new Water Bill, which among other issues covered its flood insurance scheme Flood Re.
It appears from the outset DEFRA had worked with the Association of British Insurers (ABI) to define how this cover would work.
Early into the process the ABI persuaded DEFRA leasehold properties should be excluded from this flood reinsurance scheme designed to ensure all residential properties would be able to obtain affordable cover.
The ABI assured DEFRA that leasehold properties were not a problem and that they would still be able to get cover at commercial rates.
By the time the sector became aware of the plans it was perhaps already too late.
In rare unanimity, LKP has been working with the British Property Federation, ARMA, the Council of Mortgage Lenders and others such as RICS, BIBA (British Insurance Brokers Association), FPRA and RLA to raise issues with the government.
Eventually DEFRA Minister Dan Rodgerson (LibDem) agreed to a meeting where he was told that the DEFRA position was wrong: it being based on no robust data or even a basic understanding of how large the residential leasehold is.
All parties except the ABI told the minister that the system may not work and that some leasehold sites could find a problem obtaining flood cover this year.
Rodgerson was not even properly briefed about the landlords’ commercial interest in the insurance of a leasehold block.
He did not seem to know that leaseholders pay 100 per cent of the insurance.
Maybe the ABI did not want to let the minister know in real life some of their members sometimes pass on a very dodgy commission to the landlord which is not meant to happen.
As a mark in the sand, the British Property Federation has now written to DEFRA outlining the support from LKP and others. If it turns out flood insurance is a problem it will be for DEFRA to get out of the mess.
The BPF statement on Flood Re can be read here: