Flood and storm damage claims reach £1.9 billion - Home insurance - News - Moneyfacts

News

Moneyfacts.co.uk News brings you the latest financial & economic news & reviews of the best products in the UK by our team of money experts.

Flood and storm damage claims reach £1.9 billion

Flood and storm damage claims reach £1.9 billion

Category: Home insurance

Updated: 15/02/2013
First Published: 15/02/2013

MONEYFACTS ARCHIVE
This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

The phrase "it never rains, but it pours" was never truer than last year when a record 1,330.7mm of rain fell in the UK, resulting in thousands of flooded and storm damaged homes claiming a total of £1.19 billion from insurers.

Average insurance payouts reached £18,200 last year, according to the Association of British Insurers (ABI), with 486,000 claims made by homeowners, motorists and businesses affected by the bad weather.

A total of 411,300 claims were received by insurance companies solely for homes damaged by flooding, valued at £690 million, while claims from businesses for damage to commercial properties amounted to £373 million.

An agreement to ensure insurers provide adequate cover for properties classed as high risk from potential flood damage was introduced in 2008, although this is due to come to an end this June.

The ABI has called for the Government to take responsibility and share the financial risk for the areas with the most homes at significant flood risk. In response the Government has pledged to find an economical solution to the matter, without placing financial burdens upon the UK taxpayer.

Nick Starling, director of general insurance at the ABI, said: "Insurers expect bad weather to strike anytime, anywhere and last year highlighted the vital role insurance plays in helping communities recover from our increasingly volatile weather."

What next?

Compare home insurance quotes
Compare buildings and contents insurance quotes

Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

Related Articles

Moneyfacts Home Insurance Star Ratings announced

If you’re looking for a new home insurance policy, you want it to be one you can trust, with the features you need and a level of service you can rely on. Sometimes knowing where to start can be easier said than done, so we’re here to help.

Where will you see in the New Year?

Christmas may have been and gone, but there’s another celebration that’s hot on its heels: New Year’s Eve! The question is, where will you be celebrating? And, perhaps more importantly, how much will you be spending?

Is your home ready for the cold snap?

Today marks the official start of winter, and forecasters are warning that it could get even colder in the weeks ahead with the Met Office predicting the coldest winter for five years. Is your home ready for it?
 
Close