Insurers set for flood of claims

20 November 2009 11:03am

Insurers were bracing themselves for a rush of claims from people hit by the flooding.

The Association of British Insurers (ABI) said it was too early to say how much the floods would cost the industry.

The 2007 floods across large parts of Yorkshire, the Midlands and the West Country cost insurers just over £3 billion, but they were on a much wider scale than the latest incident, which is mainly confined to Cumbria.

Around 200 people have been evacuated from their homes in Cockermouth, while flooding has also reported in north west Wales and in Dumfries and Galloway in Scotland.

The ABI said the average cost of flood damage to domestic properties was between £20,000 and £40,000.

But those who have been affected could face a long wait before they can return to their homes.

While in cases of minor flooding people are back in their homes within a matter of weeks, in more severe incidents it can take up to 12 months for a property to dry out completely.

The ABI said there was also a risk of secondary damage, where flooding impacts on a property's foundations, which does not always show up immediately.

Nick Starling, the ABI's director of general insurance and health, said: "Events like flooding highlight why insurance is so important.

"The first priority for insurers will be to ensure that every claim is dealt with as quickly as possible and they will do everything they can to help customers recover."

© The Press Association