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Counting the cost of the floods

Initial estimates from the Association of British Insurers (ABI) put the cost of the recent flood damage claims in Yorkshire and the Midlands at over £100 million.

In the immediate aftermath of the flooding Insurers have already made initial emergency payments of over £1.2 million to help flooded businesses and homeowners.

Written by Paul Brown on 18th December 2019

Counting the cost of the floods

Initial estimates from the Association of British Insurers (ABI) put the cost of the recent flood damage claims in Yorkshire and the Midlands at over £100 million.

In the immediate aftermath of the flooding Insurers have already made initial emergency payments of over £1.2 million to help flooded businesses and homeowners. In addition, at least £680,000 has so far been paid in providing alternative temporary accommodation for the worst hit flood victims whose homes became uninhabitable.

Initial ABI estimates show:

  • 4,039 flood claims have been received so far, 2,250 of these relate to flooded homes and businesses and 1,788 to damaged vehicles.
  • Of the estimated £110 million claims paid, £45 million covers damage to domestic properties and possessions, £58 million relates to business property and stock, with £7.5 million applying to damaged vehicles.
  • The average household flood claim is likely to be around £31,000 and for flooded businesses the figure is £70,000.

The average claim across all types of insured risks (fire, theft and damage etc) is £2,200 under a home insurance policy and £11,500 under a business policy which demonstrates the particularly devastating and traumatic effect of flood damage.

The recovery period for this type of claim is also longer than average and has two distinct actions. Insurers mobilise quickly in the immediate aftermath of the flood, making emergency payments and arranging alternative temporary accommodation, where necessary, to help flood victims to recover as quickly as possible. Then once the flood waters subside Insurers and Loss Adjusters work around the clock to ensure homes and businesses are fully dried out, so that repairs can start as soon as possible, and people can get their lives back together.

Flood claims are an all too frequent occurrence that cause extensive trauma and devastation to those claimants that suffer a loss. However, over a number of years Insurers have developed tried and tested action plans to respond quickly and efficiently to these events to provide practical assistance and comfort for their policyholders.

If you are interested in the points raised by this article, please speak to your usual Franklands contact on 01332 545720.

Source:

https://www.abi.org.uk/news/news-articles/2019/11/yorkshire-and-midlands-flood-damage-payouts-set-to-top-100-million-says-the-abi/

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