A report from the Association of British Insurers estimates that the floods in Cumbria in the northwestern part of England and parts of Southern Scotland in November have exceeded £200 million ($322 million) [See IJ web site – https://www.insurancejournal.com/news/international/2009/11/23/105496.htm].
The ABI cited the following loss figures:
— The cost of insurance claims following the floods is now estimated at £206 million [$332 million]
— Over half – 60 percent – of this cost relates to business damage.
— Insurers have handled 36,000 flood and storm damage claims from customers.
— Interim payments made by insurers to help homeowners and firms cope have ranged from £250 [402.80] to £400,000 [$644,296].
— Alternative temporary accommodation has been arranged for 470 customers, whose flood-damaged homes and businesses have been uninhabitable while being repaired.
Nick Starling, the ABI’s Director of General Insurance and Health, commented: “Insurers are playing a critical role in getting Cumbria back on its feet following the devastating flooding. It can take months for badly flood-damaged properties to fully dry out, which is why insurers are paying for temporary accommodation or alternative business premises for those most badly affected. This event highlights how important it is for firms to have business continuity insurance to ensure that they can continue trading while the business recovers and local infrastructure, such as bridges, are repaired.
“This was a traumatic and tragic event for those affected, but not for insurers, who expect to deal with extreme weather incidents like this during the year.
“We cannot control the weather, but we can minimize its impact. People who live and work in the region, and throughout the UK, need to be better protected against the rising flood risk. That is why the sooner that the Flood and Water Management Bill becomes law, and is implemented the better.”
Source: Association of British Insurers – www.abi.org.uk
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