Insurance payouts for flood victims predicted to hit £110m

Insurance payouts to victims of the recent flooding in swathes of Yorkshire and the Midlands are expected to reach £110 million, according to initial estimates from the Association of British Insurers (ABI).

Emergency payments totalling more than £1.2 million have already been made to help homeowners and businesses in the immediate aftermath of the flooding.

The ABI said at least £680,000 has also been paid so far in rehousing the worst hit in temporary accommodation.

The ABI said its initial estimates show:

– Just over 4,000 flood claims have been received so far – 2,250 relating to flooded homes and businesses and 1,788 to damaged vehicles

– Of the estimated £110 million payouts, £45 million will cover damaged homes and possessions, £58 million will be for business property and stock, with £7.5 million relating to damaged vehicles

– The average household flood claim is likely to be around £31,000, and £70,000 for a flooded business

On average, across all risks, home insurance claims come to £2,200, while commercial policy claims are typically for £11,500.

Mark Shepherd of the ABI said: “Insurers’ first priority when the floods struck was to help flooded customers recover from the traumatic experience as quickly as possible.

“Making emergency payments, and arranging alternative temporary accommodation where needed, helped many people cope in the immediate aftermath.”