Flood Insurance Claims Rising

Bad weatherBearing in mind that last year was the seconded wettest since records began; it’s hardly surprising that insurance companies have had their work cut out. Nevertheless dealing with 1,300 flood and storm damage claims every single day is pretty impressive.

The figures come from the Association of British Insurers and total nearly 500,000 business and domestic insurance claims caused by the bad weather. In financial terms that adds-up to £1.19 billion in payouts, the highest since the wide spread flooding in 2007 which cost insurers £3 billion.

Homeowners were the worst affected making 411,000 claims totalling £690 million. However, businesses were also hard hit, with 47,000 claims for damage to property totalling £373 million and a further £40 million in business interruption payments. The remainder of the insurance bill comprised £84 million in claims for damage to vehicles.

ABI Director Nick Starling said that, despite the atrocious weather, it was business as usual “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.”

Last year’s eye-watering payouts have inevitably sparked concerns among consumers of rising home insurance premiums. To make matters worse there’s the unresolved spat between the government and the insurance industry over The Statement of Principles. It’s a loftily titled agreement which currently guarantees insurance cover to homeowners in high flood risk areas, but is set to expire at the end of June.

Mr Starling continues “Flooding is the greatest natural threat facing the UK and the risk is rising; so political consensus and commitment on investment in flood defences, sensible planning decisions and working with the insurance industry is essential”.

At Quoteline Direct we couldn’t agree more and strongly believe that everyone should have access to affordable insurance. In fact, we are so committed that we have a dedicated ‘non standard’ home insurance team specialising in flood risk insurance, to find out more Tel: 0800 089 0467


One Response to “Flood Insurance Claims Rising”

  1. This stats are unbelievable. I guess on the other side of the world you folks get a lot of precipitation as well. In Canada (where I’m from) more specifically, Saskatchewan, we had a record snow fall now we’re waiting for the flooding to begin.

    Keep us in your thoughts!

    Ash

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