Flood damage costs insurance industry £426m

The insured bill for the damage caused by the storms and flooding over the Christmas 2013 and New Year period looks set to cost £426million, says the Association of British Insurers (ABI).

The ABI made the estimate after 174,000 claims for homes, businesses and cars which were damaged by the bad weather were dealt with between 23 December 2013 and 8 January 2014.

The latest bill comes as a further blow to insurers after they were required to pay in the region of £160 million worth of payments people affected by the St Jude storm which hit the country last autumn.

Aidan Kerr, the ABI’s Assistant Director, Head of Property, insisted that insurers will work closely with customers to get repairs completed as soon as possible.

He commented, “Insurers are playing a crucial role in helping customers affected by the storms and floods recover. Together with loss adjusters, insurers reacted quickly to help flood victims get through Christmas. Insurers will continue to work closely with customers to ensure the repair process is completed as soon as possible.

“This was a traumatic event for those affected, and shows the importance of having adequate property insurance. The insurance industry is fully prepared to deal with the damage caused by bad weather like this.”

Gales continue to batter southern parts of the UK, with coastal areas hit by winds and rain. Storm-hit regions are braced for more bad weather, with more than 5,000 homes having already been flooded since the bad weather started late last year.

Gusts reached 80 mph on the coasts of Cornwall, the Bristol Channel and west Wales last week, and the Environment Agency has warned of the risk of further floods; bad news for insurers as well as those householders and businesses affected.