The summer of 2026 has seen significant pressure on water resources across England. By August 71% of England by land area was classed as being in drought. Subsidence claims in August hit their highest monthly level on record according to Hastings Direct.
At the same time, recent rainfall has demonstrated that drought does not mean flooding is off the table. In fact the Environment Agency has specifically highlighted heavy rainfall following prolonged dry weather can increase surface water run-off. When the ground has become very dry and hard, rainwater may be less readily absorbed into the soil, increasing the amount of water running across the surface. This is an important consideration for businesses that may never previously have regarded flooding as a significant risk.
When dry ground becomes a flood risk
After prolonged periods of hot, dry weather, however, soil can become baked and compacted. When heavy rain then arrives, water may initially struggle to penetrate the surface and instead run across it. A useful way of thinking about this is to compare the ground to a water spillage on carpet vs a hard surface. When soil is healthy and able to absorb rainfall, water can gradually soak into the ground, much like water being absorbed into a carpet. The result can be rapid surface water run-off, particularly where drainage systems are unable to cope with the volume of water arriving in a short period.
Flooding isn’t just about rivers
When people think about flood risk, they often picture rivers bursting their banks, however surface water flooding can happen almost anywhere. Intense rainfall can overwhelm drainage systems, particularly where large areas of car parks, roofs and paved surfaces prevent water from naturally dispersing. The Environment Agency has highlighted surface water flooding as a significant risk, with previous extreme rainfall events affecting thousands of properties including businesses and infrastructure. Businesses should consider:
- Damage to buildings from water entering a commercial property which can affect flooring, walls, electrical systems, machinery, stock and fixtures and fittings.
- Business interruption - even where physical damage is relatively limited, being unable to access premises or operate normally can quickly result in lost revenue and additional costs
- Businesses holding valuable equipment, raw materials or finished goods should consider how vulnerable these are to water ingress and whether they are stored appropriately.
- Access and supply chains - flooding may affect roads, employees, suppliers and customers even when a business's own premises remain relatively unaffected.
- Extreme weather is not limited to flooding. Strong winds can damage roofs, cladding, signage, windows, external equipment and other parts of commercial premises.
- Prolonged periods of high temperatures can place additional pressure on buildings. Dry conditions can contribute to ground movement and subsidence in some areas. Read our previous blog for more information.
Our tip tips to stay ahead
The UK's weather is becoming harder to predict with weather-related risks no longer necessarily seasonal, predictable or confined to areas traditionally associated with them. Resilience starts with understanding current risks and taking practical steps to reduce their impact.
1. Review your property's flood exposure. Don't just look atwhether the property is in a traditional flood zone, consider surface water,drainage, neighbouring land, nearby watercourses and how water could movearound the site.
2. Extreme weather can expose weaknesses in insurance arrangements. Review buildings, contents, equipment, stock and business interruption sums insured to ensure they remain appropriate.
3. Inspect drainage, roofs and gutters regularly. Consider where valuable equipment and stock are positioned and whether they could be moved away from potential water ingress.
4. Think about business interruption. Ask yourself how long your business could realistically operate if the premises became unusable…consider alternative premises, remote working, suppliers, key equipment and access to essential records and systems.
As a Chartered Insurance Broker, Harborough Portas is encouraging businesses to think beyond the immediate forecast and consider longer term whether their property, insurance arrangements and business continuity plans are prepared for a wider range of weather extremes. The challenge is not simply that we may experience hotter summers or heavier rainfall, it’s the combination of different risks and the speed at which conditions can change. Any changes to your property, operations, stock levels, equipment and business interruption exposure should be notified to your broker. If you have any questions please feel free to get in touch.
