Insurance pay outs to help customers recover from Storms Ciara and Dennis set to top £360 million says the ABI
Mark Shepherd, ABI’s Assistant Director, Head of General Insurance Policy. (Credit: ABI)
Insurers expect to make payments to customers hit by the recent Storms Ciara and Dennis of over £360 million according to initial estimates out today from the Association of British Insurers (ABI).
Insurers made initial emergency payments of over £7.7 million to help flooded homeowners and businesses in the immediate aftermath of the flooding and wind damage, with repairs to many properties now under way. They have also arranged and paid for emergency temporary alternative accommodation for families whose homes are uninhabitable.
Initial ABI estimates show payouts from Storms Ciara and Dennis that struck in quick succession:
- Total payments to customers estimated at £363 million.
- A total of 82,000 claims have been received for flood and wind damage. Of these, 64,300 were for damaged homes and possessions, 10,600 for businesses and stock, with 7,100 relating to damaged vehicles.
Breaking the figures down:
Flood claims, with estimated total payout of £214 million:
- 3,350 domestic property flood claims, totalling an estimated £107million. The average cost of repairing a flood damaged home will be around £32,000.
- 1,500 commercial property flood claims, £85 million
- 3,600 motor claims, £21.7 million.
Windstorm damage, with estimated payout of £149 million:
- 61,000 domestic property claims, totalling £77million
- 9,000 commercial property claims, £61 million
- 3,500 motor claims, £11 million
Mark Shepherd, ABI’s Assistant Director, Head of General Insurance Policy, said:
“Insurers’ first priority when bad weather strikes is always to help customers recover from the traumatic experience as quickly as possible. With some properties still under water, making emergency payments and arranging emergency alternative temporary accommodation or trading premises is very much a live issue.
“When the flood waters recede, the hard work begins. Insurers and loss adjusters will continue working around the clock to ensure homes and businesses are fully dried out, so that repairs can start as soon as possible, and people can get their lives back together.”
The flooding in parts of south Yorkshire and the Midlands in November last year are set to cost in excess of £110 million. The last time several storms of significance struck in quick succession was in December 2015, when Storms, Eva, Frank and Desmond caused insured damaged valued at £1.3 billion.
Source: Company Press Release