Recent figures released from the Association of British Insurers (ABI) show that the damage caused by Storms Dudley, Eunice and Frankin, that hit much of the UK during February 2022, is expected to lead to insurers paying out nearly £500m in dealing with 177,000 insurance claims.
The figures show that there have been 177,000 claims notified for damaged homes, businesses and vehicles, with total payouts of £497m expected. Of these claims, 169,500 of them relate to property damage, costing £473m
Figures also estimate that £2.2m will be paid in arranging alternative temporary accommodation for policyholders, whose homes were uninhabitable while repairs being carried out.
In addition, emergency payments to relieve immediate hardship totalled £13m.
ABI’s figures also show that there were 7,552 claims for damage caused to vehicles, leading to incurred claims worth £23m.
ABI states that this overall payout figure compares to the estimated £543m paid in storm and flood claims following Storms Ciara, Dennis and Jorge in February 2020.
Sarah Brodie, the ABI’s Senior Policy Adviser, General Insurance, said: “Storms and floods are exactly the type of unwelcome event that insurance protects against. When bad weather strikes, the priority for insurers is always do all they can to help their customers recover from what can be a traumatic and costly experience as quickly as possible.
“From making immediate emergency payments where needed, arranging temporary alternative accommodation while badly damaged properties are being repaired, to organising repairs, insurers continue to support their customers whenever storms strike.”
Ben Wilson, ABI’s Director of Corporate Affairs and Climate Change, added: “The Environment Agency projects that winter rainfall could increase by between 6 and 13%, while the sea level rises by at least 23cm – at a time when the number of properties on flood plains is projected to double. The scale of this challenge demands that we maintain our sector’s focus on Net Zero and delivering our Climate Change Roadmap.
“Even if the Paris goals are met, our planet will experience major disruption due to rising temperatures. It is vital that the role of the insurance sector in helping property owners recover from the impacts of flooding should be complemented with greater investment in building and maintaining flood defences and a more co-ordinated approach to planning policy.”