Home insurance Updated:
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."
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