Newsuk floods 2012abiInsurance

Insurers Pay Out £1.19bn In UK Flood Claims - Less Than Half Of 2007 Claims Total

Insurers Pay Out £1.19bn In Flood Claims
Charlie Thomas

The second wettest British summer on record has cost insurers £1.19 billion - the highest annual figure in five years.

Around 486,000 claims were made for damage from the storms and floods by homeowners, businesses and motorists, equating to 1,330 each day, according to the Association of British Insurers (ABI).

The average claim payout for flood-damaged homes and businesses was £18,200.

Home damage claims accounted for 411,000 claims and £690m, while 47,000 business property claims totaled £373m.

Another £40m was handed out to help businesses continue trading while their premises were being repaired.

And 27,000 claims were filed for for flood and storm-damaged vehicles, resulting in a total payout of £84m.

UK Winter Weather
Winter Weather December 28th(01 of31)
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The River Thames in Henley-on-Thames, South Oxfordshire which has burst it banks and flooded neighboring fields. (credit:PA)
Winter weather December 27th(02 of31)
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Wet weather in Spring Cottage, Leicestershire, as a wet and stormy weekend could mark the end of one of the wettest years in history in Britain, with no respite expected for the saturated south west. (credit:PA)
Winter weather December 27th(03 of31)
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Wet weather in Spring Cottage, Leicestershire, as a wet and stormy weekend could mark the end of one of the wettest years in history in Britain, with no respite expected for the saturated south west. (credit:PA)
Winter weather December 27th(04 of31)
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Wet weather in Spring Cottage, Leicestershire, as a wet and stormy weekend could mark the end of one of the wettest years in history in Britain, with no respite expected for the saturated south west. (credit:PA)
Winter weather Dec 25th(05 of31)
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Swans paddle in a flooded Stapenhill Gardens in Burton On Trent, Staffordshire, as hopes of a white Christmas were washed out as many Britons awoke to Yuletide flooding. (credit:PA)
Winter weather Dec 26th(06 of31)
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A view of the flooded Wharf Lane Recreation Ground, home of Radcliffe Olympic Football Club, Radcliffe on Trent, Nottinghamshire after heavy rainfall. (credit:PA)
Winter weather Dec 25th(07 of31)
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Flood waters cover the parklands at Washlands Park in Burton On Trent, England, Tuesday Dec. 25, 2012, during a lull in the rainy weather on Christmas Day. Hopes of a white Christmas were washed out as many Britons awoke to Yuletide flooding across many regions of the country. (AP Photo / Rui Vieira, PA) UNITED KINGDOM OUT - NO SALES - NO ARCHIVES (credit:AP)
Winter weather Dec 25th(08 of31)
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Water covers a road in Walton On Trent, South Derbyshire, as hopes of a white Christmas were washed out as many Britons awoke to Yuletide flooding. (credit:PA)
Winter weather Dec 24th(09 of31)
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A flooded 5-a-side football centre in Nottingham after the River Trent burst its banks following heavy rainfall. (credit:PA)
Winter weather Dec 24th(10 of31)
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The Regatta at Holme Pierrepont National Watersports Centre in Nottingham is flooded after heavy rainfall. (credit:PA)
Winter weather Dec 24th(11 of31)
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A golf course and driving range in Nottingham is flooded after the River Trent burst its banks following heavy rainfall. (credit:PA)
Winter weather Dec 24th(12 of31)
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A golf course and driving range in Nottingham is flooded after the River Trent burst its banks following heavy rainfall. (credit:PA)
Winter weather Dec 26th(13 of31)
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A view of the flooded Wharf Lane Recreation Ground, home of Radcliffe Olympic Football Club, Radcliffe on Trent, Nottinghamshire after heavy rainfall. (credit:PA)
Winter weather Dec 25th(14 of31)
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A flooded first tee at Branston Golf Course, Staffordshire, as hopes of a white Christmas were washed out today as many Britons awoke to Yuletide flooding. (credit:PA)
Winter weather Dec 25th(15 of31)
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A couple look at a flooded Stapenhill Gardens in Burton On Trent, Staffordshire, as hopes of a white Christmas were washed out as many Britons awoke to Yuletide flooding. (credit:PA)
Winter weather Dec 25th(16 of31)
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A man takes a photo of a flooded Washlands Park in Burton On Trent, Staffordshire, as hopes of a white Christmas were washed out as many Britons awoke to Yuletide flooding. (credit:PA)
Winter weather Dec 25th(17 of31)
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A general view of flooding at Washlands Park in Burton On Trent, Staffordshire, as hopes of a white Christmas were washed out as many Britons awoke to Yuletide flooding. (credit:PA)
Winter weather Dec 25th(18 of31)
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Flood and road closed signs at Walton On Trent, South Derbyshire, as hopes of a white Christmas were washed out today as many Britons awoke to Yuletide flooding. (credit:PA)
Winter weather Dec 25th(19 of31)
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A flooded rugby field near Burton On Trent, Staffordshire, as hopes of a white Christmas were washed out today as many Britons awoke to Yuletide flooding. (credit:PA)
Winter weather Dec 26th(20 of31)
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Clouds over the North Sea at Seaham near Sunderland. (credit:PA)
Winter Weather December 28th(21 of31)
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A flooded road in Clifton Hampden in Oxfordshire. (credit:PA)
Winter Weather December 28th(22 of31)
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A man walks down a flooded road in Clifton Hampden in Oxfordshire. (credit:PA)
Winter Weather December 28th(23 of31)
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The River Thames in Henley-on-Thames, South Oxfordshire which has burst it banks and flooded neighboring fields. (credit:PA)
Winter Weather December 28th(24 of31)
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The River Thames in Henley-on-Thames, South Oxfordshire which has burst it banks and flooded neighboring fields. (credit:PA)
Winter Weather December 28th(25 of31)
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A man walks down a flooded road in Clifton Hampden in Oxfordshire. (credit:PA)
Winter Weather December 28th(26 of31)
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The River Thames in Henley-on-Thames, South Oxfordshire which has burst it banks and flooded neighboring fields. (credit:PA)
Winter Weather December 28th(27 of31)
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The River Thames in Henley-on-Thames, South Oxfordshire which has burst it banks and flooded neighboring fields. (credit:PA)
Winter Weather December 28th(28 of31)
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The River Thames at Temple Island in Henley-on-Thames, South Oxfordshire which has burst it banks and flooded neighboring fields. (credit:PA)
Winter Weather December 28th(29 of31)
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The River Thames in Henley-on-Thames, South Oxfordshire which has burst it banks and flooded neighboring fields. (credit:PA)
Horse Racing - William Hill Winter Festival - Day One - Kempton Park Racecourse(30 of31)
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Racegoers wait for the action to start in front of William Hill signage at Kempton Park Racecourse (credit:PA)
Winter weather December 27th(31 of31)
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Views of the a closed section of the Thames Barrier from Silvertown, Docklands, after heavy rain across the country. (credit:PA)

Despite the enormous numbers, the £1.19bn payout is still dwarfed by the £3bn paid out by insurers in 2007, the worst year in memory for British flooding.

Attention now turns to the yet-to-be-agreed extension to a deal between government and insurers to ensure cover for high-risk homes. The existing arrangement is set to expire at the end of June.

Last November, the government said it had put forward a proposal to the industry last week, which was being considered. Insurers want to top-slice all insurance premiums to create a new funding pot to cover flooding claims.

But while that is being built up, they want the government to step in to provide a temporary overdraft to cover any shortfall during intense periods of flooding.

The ABI has put forward proposals for how affordable premiums in high-risk areas can continue and said that talks with the government about this are ongoing.

Nick Starling, ABI's director of general insurance, said: "Last year highlighted the vital role insurance plays in helping communities recover from our increasingly volatile weather.

"Flooding is the greatest natural threat facing the UK and the risk is rising so political consensus and commitment on investment in flood defences, sensible planning decisions and working with the insurance industry is essential."

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