Floods bill estimated at £1.3bn

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Insurance claims for damage caused by floods so far this winter will reach £1.3bn, the Association of British Insurers (ABI) has said.

The figure is the value of claims for those affected by storms Desmond, Eva and Frank for damage to homes, businesses and vehicles.

The ABI said that around £24m in emergency payments had already been paid to families and businesses.

More than 3,000 families are now in alternative accommodation.

The three storms caused widespread flooding and damage across the UK in December, with Yorkshire, Lancashire, Cumbria in England and central and north-east Scotland among the worst affected.

The government has said 16,000 homes were flooded.

‘Major undertaking’

The ABI’s figures are based on data collected from its members, which are the majority of major insurance companies, covering 3 December 2015 to 3 January 2016.

The average insurance claim for damage is £50,000, well above the average of £31,000 for the storms of winter 2013-14.

The overall bill, however, is well below the £3bn total for the storm damage caused in 2007.

Flooding advice

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The Association of British Insurers said that anyone with flood-damaged possessions should:

  • Contact their home insurer for immediate advice on what to do next. In some cases an inspection of possessions will not be necessary.
  • Dispose of any items that are a health hazard, such as rotting food.
  • Take photos of damaged items before throwing them away.
  • List, as far as possible, details of damaged items.
  • For items like carpets and soft furnishings, take a cutting as this can help your insurer in providing a similar replacement or cash payment.

Customers have made nearly 15,000 claims for damaged property, and 5,600 claims for damage to vehicles.

James Dalton, director of general insurance policy at the ABI, said: “The impact of flooding will be felt for many months to come in affected areas.

“Cleaning, drying out and repairing flood-damaged properties is a major undertaking.

“Insurers and their expert teams will be there for the long haul to help communities rebuild and repair.”

‘Waiting weeks’

However, Paul Hendy of the Scottish Flood Forum said despite assurances from the industry, many people felt “abandoned and frustrated” by their insurance company.

Homeowners reported difficulties getting through to their insurer to register a claim, and often waited weeks for a visit from a loss adjuster, meaning delays before dehumidifiers were installed and further damage, he said.

“Our concern is that despite the storms being widely publicised throughout the UK, the insurance industry could perhaps have been a little bit more prepared in their response,” he said.

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