Insurers Count The Rising Costs Of UK Flooding

By Stewart Douglas

The widespread flooding throughout England over the last months looks set to amount to over £2 billion in insurance claims.

The figures released today by the Association of British Insurers show that the devastating flooding over the course of the British summer could lead to a record figure of insurance claims, with tens of thousands of people left struggling without clean water or electricity.

Tens of thousands of homes across England have been significantly damaged by some of the worst flooding in history, with many young families and elderly residents affected.

Insurance claims have skyrocketed with structural damage and ruined furnishings, and the claims show no sign of halting with the continuing devastation throughout western England.

Additionally the mounting cost of aid and the clean up operation could run into further hundreds of millions in costs, as well as taking several weeks to complete.

The Association of British Insurers have priced June alone at a cost of £1.5 billion, or around $3 billion, which are record insurance claims for flooding in the UK.

However the ABI has placed an emphasis on finding accommodation for those families left temporarily homeless by the flooding, and the figures released are based primarily on the claims made so far.

With the steadily growing number of insurance claims, the ABI have forecast that this could result in a backlog of insurance claims, with prospective claimants urged to have patience at this time.

Insurers Direct Line have placed the current waiting time at 5 days for claims assessors to arrive on site following claims by policy holders.

The Association of British Insurers has stressed the importance of adequate flood defence measures, and has urged the government to invest more heavily in preventing situations of this severity in the future.