ABI gives flood claim update

by Gill Montia

Story link: ABI gives flood claim update

The Association of British Insurers (ABI) has reported that the insurance industry is currently handling over 50,000 claims resulting from the flooding in June and July.

Claims for the July floods currently stand at 12,000 for homes, and 3,500 for businesses.
Experts believe that the cost of the damage caused by the July floods is likely to reach £1 billion; this would increase the estimated cost of the floods so far this summer to £2.5 billion.

Delays in settling claims are inevitable as there is immense pressure on all those involved, especially loss adjusters and restoration management companies. Claims are being prioritised, so that the most vulnerable and the hardest hit policyholders are dealt with first.

The ABI’s message to the Government is clear: it must invest more in flood defences, and new homes must not be built in areas at high risk of flooding.

Meanwhile, a paper from the Intergovernmental Panel on Climate Change has highlighted the fact that a hotter, drier environment can result in heavier rain than might usually be expected.

Another report from the governance and sustainable investment team at F&C, the asset management company, is urging insurers to getting involved in risk reduction activities, such as advising customers how to reduce the risk of flooding in the future.

Finally, Direct Line has reassured pet owners by confirming that its pet insurance will cover the cost of relocation and accommodation of pets displaced by flooding.