UK Insurers Set For £360 Million Storm Bill

The Association of British Insurers (ABI) has said the hard work now begins as it estimates that the costs of damage from Storms Ciara and Dennis is set to be over £360 million.

The association said insurers made initial emergency payments of over £7.7 million to help flooded homeowners and businesses in the immediate aftermath of the flooding and wind damage, with repairs to many properties now under way.

Initial ABI estimates total payments to customers are estimated at £363 million.

A total of 82,000 claims have been received for flood and wind damage. Of these, 64,300 were for damaged homes and possessions, 10,600 for businesses and stock, with 7,100 relating to damaged vehicles.

In terms of flooding the ABI statistics found there have been 3,350 domestic property flood claims, totalling an estimated £107million. The average cost of repairing a flood damaged home will be around £32,000. There were 1,500 commercial property flood claims, totalling £85 million, and 3,600 motor claims, valued at £21.7 million.

There were 61,000 domestic property windstorm damage claims, totalling £77million, 9,000 commercial property claims, at £61 million, and 3,500 motor claims, estimated at £11 million

Mark Shepherd, ABI’s Assistant Director, Head of General Insurance Policy, said: “Insurers’ first priority when bad weather strikes is always to help customers recover from the traumatic experience as quickly as possible. With some properties still under water, making emergency payments and arranging emergency alternative temporary accommodation or trading premises is very much a live issue.

“When the flood waters recede, the hard work begins. Insurers and loss adjusters will continue 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.”

The flooding in parts of south Yorkshire and the Midlands in November last year are set to cost in excess of £110 million. The last time several storms of significance struck in quick succession was in December 2015, when Storms, Eva, Frank and Desmond caused insured damaged valued at £1.3 billion.