The Association of British Insurers (ABI) has said the hard work begins as the industry faces a £100 million bill for the floods that have devastated parts of the UK.
The association said it had put the cost of expected claims from people hit by the recent floods in Yorkshire and the Midlands at £110 million.
It added insurers have already made initial emergency payments of over £1.2 million to help flooded homeowners and businesses in the immediate aftermath of the flooding. In addition, at least £680,000 has so far been paid in re-housing the worst hit flood victims in alternative temporary accommodation, where their homes have become uninhabitable.
Initial ABI estimates show:
- So far just over 4,000 (4,039) flood claims have been received: 2250 of these relate to flooded homes and businesses; 1788 to damaged vehicles.
- Of the estimated £110 million payouts, £45 million covers damaged homes and possessions; £58 million for business property and stock, with £7.5 million relating to damaged vehicles.
- The average household flood claim is likely to be around £31,000, and £70,000 for a flooded business. This compares to the average claim across all insured risks of £2,200 under a home insurance policy and an average claim of £11,500 on a commercial policy.
Mark Shepherd, ABI’s Assistant Director, Head of General Insurance Policy, (pic) said: “Insurers’ first priority when the floods struck was to help flooded customers recover from the traumatic experience as quickly as possible. Making emergency payments, and arranging alternative temporary accommodation where needed, helped many people cope in the immediate aftermath.
“Now the flood waters have receded, the hard work begins. Insurers and loss adjusters are working around the clock to ensure homes and businesses are fully dried out, so that repairs can start as soon as possible, and people can get their lives back together.”