Insurers set to pay out £520m after Desmond floods

INSURERS are expecting to pay out more than £520m to help flood victims in Cumbria and Lancashire recover after Storm Desmond.

Up to £2.6m in emergency aid has already been paid out to people and businesses for immediate needs such as food, clothing, staff salaries, domestic appliances and Christmas gifts, according to the Association of British Insurers.

Thousands of homes and business were flooded in Northern England and the Scottish borders during the worst of the storm on December 4 and 5.

The ABI said there have been 23,700 claims for property damaged by the storm or its floods, with above 4,000 of the claims relating to businesses.

Of the emergency payments made so far, £1.7m has been to domestic customers and £900,000 to businesses.

Some 2,800 motor vehicle claims have also been made

More than 4,500 initial visits have been made by loss adjusters, who handle the more severe claims.

Floods in Cumbria cost the insurance industry £272m in 2005 and £276m in 2009.

Storm Desmond’s £520m payout is for a larger affected area but Cumbria suffered the worst of the damage.

The flooding in 2007, which affected large parts of Northern Ireland, Yorkshire, The Midlands, Gloucestershire, Herefordshire, Worcestershire, Oxfordshire, Berkshire and South Wales, resulted in 185,000 claims with a total cost of £3bn.

ABI’s director of general insurance policy James Dalton said: “Following Storm Desmond, insurers and their representatives have been there beside those affected to provide practical help and support as quickly as possible.

“Being flooded is hugely traumatic and insurers have worked round the clock to get the repair process under way, provide immediate payments to people affected and find families somewhere warm and dry to stay.

“The flood waters have mostly receded but for affected families and businesses the impact is going to be felt for months. Insurers and their expert teams will be there for the long haul to help communities rebuild and repair.”

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