Insurers say floods and storms payouts to top £1 billion

Insurers say they expect to pay out more than £1 billion to people whose homes, businesses and vehicles were damaged in the recent floods and storms.

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Insurers: 'Far too early to say' if premiums will rise

It is "far too early to say" if and by how much insurance premiums will go up after thousands homes and businesses were damaged by the south coast floods, according to the Association of British Insurers.

Malcolm Tarling told Daybreak that insurers would "do the maths" after flood victims had been allowed to safely move back into their homes.

Flooded homes 'can take months to become habitable'

The flood waters may have mostly receded, but for many the distress of being flooded remains raw.

Insurers and loss adjusters are playing a crucial role in the recovery process. A badly flooded property can take months to become habitable again, so insurers continue working around the clock to ensure that the drying out process is completed as quickly and as safely as possible.

While of course this was a serious and significant bad weather event the current flood damage costs remain well below the severe floods of 2007 when insurers paid out £3 billion to customers.

– Otto Thoresen, ABI's Director General

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Breakdown of flood payouts

The Association of British Insurers estimates it will be paying out £1.1 billion to customers affected by floods and storms in the wettest winter on record.

£446 million of that figure will be paid out for flood damage alone. Here is how it breaks down:

Homes:

  • £276 million in payouts
  • 9,000 flood-hit home owners

Businesses:

  • £149 million in payouts
  • 3,100 claims were received from this sector

Vehicles:

  • £22 million will be paid to flood-hit vehicle owners
  • 5,400 claims for flooded vehicles

Insurers to pay out more than £1bn for bad weather

File photo dated 11/02/14 of a resident pumping out water from his house in Wraysbury, Berkshire. Credit: PA

An estimated £1.1 billion will be paid in insurance claims to people whose homes, businesses and vehicles were damaged in floods and storms this winter, according to figures released today by the British insurance industry.

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