Flooding costs insurers £1.2bn

Flooding costs insurers £1.2bn

Around 486,000 claims for damage from homeowners, businesses and motorists were dealt with, equating to 1,330 each day, the Association of British Insurers (ABI) said.

Insurers dealt with 411,000 claims for flood and storm-damaged homes, paying out £690m to make repairs and replace ruined possessions.

They handled 47,000 business property claims following flood and storm damage, paying out £373m and £40m was also handed out to firms to help them continue trading while their premises were repaired.

The ABI said that 27,000 claims for flood and storm-damaged vehicles were handled, resulting in a total payout of £84m.

The overall total is the largest since £3bn was paid out by insurers in 2007 when the country was also struck by bad flooding.

An agreement between government and insurers to ensure cover for high-risk homes is set to expire at the end of June.

The ABI has put forward proposals for how affordable premiums in high-risk areas can continue and said that talks with the Government about this are ongoing.

Nick Starling, ABI’s director of general insurance, said: “Last year highlighted the vital role insurance plays in helping communities recover from our increasingly volatile weather.

“Flooding is the greatest natural threat facing the UK and the risk is rising so political consensus and commitment on investment in flood defences, sensible planning decisions and working with the insurance industry is essential.”

Source: PA

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