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The purpose of this paper is to understand how built environment professionals approach the valuation of flood risk in commercial property markets and whether insurance…
The purpose of this paper is to understand how built environment professionals approach the valuation of flood risk in commercial property markets and whether insurance promotes mitigation in different insurance and risk management regimes, draw common conclusions and highlight opportunities to transfer learning.
An illustrative case study approach involving literature search and 72 interviews with built environment professionals, across five countries in four continents.
Common difficulties arise in availability, reliability and interpretation of risk information, and in evaluating the impact of mitigation. These factors, coupled with the heterogeneous nature of commercial property, lack of transactional data and remote investors, make valuation of risk particularly challenging in the sector. Insurance incentives for risk mitigation are somewhat effective where employed and could be further developed, however, the influence of insurance is hampered by lack of insurance penetration and underinsurance.
Further investigation of the means to improve uptake of insurance and to develop insurance incentives for mitigation is recommended.
Flood risk is inconsistently reflected in commercial property values leading to lack of mitigation and vulnerability of investments to future flooding. Improvements are needed in: access to adequate risk information; professional skills in valuing risk; guidance on valuation of flood risk; and regulation to ensure adequate consideration of risk and mitigation options.
The research addresses a global issue that threatens local, and regional economies through loss of utility, business profitability and commercial property value. It is unique in consulting professionals across international markets.
Improved management of commercial property at risk from flooding may result from well-targeted advice from built environment (BE) professionals, such as surveyors, valuers…
Improved management of commercial property at risk from flooding may result from well-targeted advice from built environment (BE) professionals, such as surveyors, valuers and project managers. However, research indicates that the role of these professionals in providing such advice is currently limited for a variety of reasons. This paper aims to investigate the (perceived and real) barriers and opportunities for providing such advice in a number of international locations. In particular, the research sought greater understanding of the link between regulation and guidance; perceived roles and capacity; and training and education needs.
To cover different international settings, an illustrative case study approach was adopted within the selected countries (Australia, UK, USA, China and Germany). This involved a qualitative approach using semi-structured interviews of BE professionals with experience of advising on commercial properties at risk of flooding. Due to the specific nature of these interviews, a purposive sampling approach was implemented, leading to a sample of 72 interviews across the five international locations.
Perceived barriers were linked to regulatory issues, a shortage of suitably experienced professionals, a lack of formal guidance and insurance requirements. BE professionals defined their roles differently in each case study in relation to these factors and stressed the need for closer collaboration among the various disciplines and indeed the other key stakeholders (i.e. insurers, loss adjusters and contractors). A shortage of knowledgeable experts caused by a lack of formal training, and education was a common challenge highlighted in all locations.
The research is unique in providing an international perspective on issues affecting BE professionals in providing robust and impartial advice on commercial property at risk of flooding. While acknowledging the existence of local flood conditions, regulatory frameworks and insurance regimes, the results indicate some recurring themes, indicating a lack of general flood risk education and training across all five case study countries. Learning across case studies coupled with appropriate policy development could contribute toward improved skills development and more consistent integration of BE professionals within future flood risk management practice, policy and strategy.
This study aims to investigate the level of preparedness among property owners who had experienced flood damage to their properties in two cities in England following the…
This study aims to investigate the level of preparedness among property owners who had experienced flood damage to their properties in two cities in England following the summer floods of 2007. Flooding can have a variety of impacts on residential properties and businesses that may be unprepared and therefore vulnerable to both direct and indirect effects. Research suggests that the focus in analysis of damage to flood plain population (residential and commercial) tends to be on the direct tangible impacts, limiting their ability to recognize the true costs of flooding, thereby leading to unpreparedness to future flooding. Greater understanding of the level of preparedness against different types of flood impacts is likely to contribute towards increased knowledge of the likely resilience of residential and commercial property occupiers.
Primary data obtained through self-administered postal questionnaire survey of floodplain residential and commercial residents provide the basis for the research analysis and findings. The rationale behind choosing the locations for the research was based on the need to investigate areas where a sizeable number of residential and commercial properties were affected during the 2007 event, in this case, Sheffield and Wakefield in the northern part of England were chosen. The data collected were subjected to descriptive statistical analysis.
The result of the analysis revealed that non-structural measures have been implemented by more people when compared to other measures, which can be linked to the fact that non-structural measures, in most, cases do not have financial implication to the property owners. The uptake of the other measures (resistance and resilience) is very low. It can be concluded from the findings that the level of implementation of measures to reduce damage from potential future flooding among the flood plain residents is relatively low and mainly focussed towards reducing the direct effects of flooding.
The study argues that increased resilience can be sustainable only by developing integrated attitude towards risk reduction not only by enhancing coping strategy by reducing direct impacts of flooding but also equally focussing on indirect effects.
There have been previous studies towards investigating the impacts of flooding on residential and commercial property owners as a separate entity. It is believed that this is the first time in which both residential and commercial properties will be investigated together as one body of research.