$11+ Million a Day in UK Flood Insurance Claims Says ABI; Total $1.8+ Billion

March 13, 2014

The Association of British Insurers (ABI) has calculated that insurance claims from the recent spate of floods in the UK are averaging £6.7 million a day [$11.176 million]. The ABI said the “wettest winter on record is likely to result in £446 million [$744 million] being paid in insurance claims to customers whose homes, businesses, and vehicles were flooded,” according to updated figures released by the ABI, covering the period 23 December 2013 to 28 February this year.

“Taking into account the projected cost of storm damage claims over the same period, insurers will be paying an estimated £1.1 billion [$1.835 billion] to help their customers recover from the effects of the bad weather,” the ABI said.

The bulletin summarized the claims relevant to the 23rd of December 2013 to the 28th of February this year as follows:

•Insurers received 17,500 flood claims: 9,000 from homeowners, 5,400 for flooded vehicles, and 3,100 from businesses.

•Of the £446 million, an estimated £276 million [$460.5 million] is expected to be paid to flooded homeowners; £149 million [$248.6 million] to business owners, and £22 million [$36.7 million] to vehicle owners.

•Flooded customers have already received emergency payments of £27 million [$45 million].

•Insurers have arranged temporary alternative accommodation for over 2,100 flooded households at a projected cost of £24 million [$40 million], and are doing everything possible to get people back into their homes as soon as it is safe to do so.

•Loss adjusters have made over 6,500 visits to flooded properties to assess the damage, organize emergency payments, and get drying out and repairs started as quickly as possible.

•In addition to flood claims, Insurers received 421,500 storm claims; 361,600 from homeowners, 15,200 for storm-damaged vehicles and 44,700 from businesses.

ABI Director General Otto Thoresen said: “The flood waters may have mostly receded, but for many the distress of being flooded remains raw. Insurers and loss adjusters are playing a crucial role in the recovery process. A badly flooded property can take months to become habitable again, so insurers continue working around the clock to ensure that the drying out process is completed as quickly and as safely as possible.

“While of course this was a serious and significant bad weather event the current flood damage costs remain well below the severe floods of 2007 when insurers paid out £3 billion [$5 billion] to customers.”

Source: Association of British Insurers (ABI)

 

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