Insurers count costs of the Winter floods - £1.3 billion in payouts

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Storms Desmond, Eva and Frank caused devastating floods during December and over the New Year.  Figures released last week by the Association of British Insurers (ABI), show that insurance companies have made a massive response to the aftermath:

  • just over 3,000 families are in alternative accommodation whilst repairs are made to their homes;
  • emergency payments of nearly £24 million already made to families and businesses to cover food, clothing and staff salaries;
  • total pay outs estimated to reach £1.3 billion.

The average pay out for domestic flood claims was £50,000 – compared with the £31,000 average from the 2013/14 winter storms.  The ABI also found that:

  • customers have made nearly 15,000 claims for property damaged by the floods;
  • 5,600 motor claims have been filed;
  • more than 8,300 initial visits have been made by loss adjusters1.

 The figures are shown in the ABI's infographic  - Flooding 2015-2016: The story so far
 
James Dalton, Director of General Insurance Policy at the ABI, said:

"The December storms have brought devastating flooding to significant parts of the UK. Insurers and their representatives have been there to provide practical help and support as quickly as possible to families and businesses coping with the trauma.

"In the immediate aftermath insurers have focused on urgent needs, providing families with somewhere to live and helping businesses into alternative trading premises. They get cash into the hands of those affected so they can buy food and dry clothes. Then, they get the repair process under way as quickly as possible.

"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." 2
 
References
1. https://www.abi.org.uk/News/News-updates/2016/01/Winter-flooding-2015-16-the-story-so-far
2. https://www.abi.org.uk/News/News-releases/2016/01/New-figures-reveal-scale-of-insurance-response-after-recent-floods

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