Storm insurance bill approaching £500m

Insurance firms say they expect the bill for damage caused by three storms earlier this year to reach nearly £500million.

Storms Dudley, Eunice and Franklin – which hit much of the UK during February – have generated around 177,000 claims for damaged homes, businesses and vehicles, with total payouts of £497million predicted, according to the Association of British Insurers (ABI). Of these claims, 169,500 relate to property damage, costing about £473million, and 7,522 claims for damage caused to vehicles, leading to claims worth around £23million.

In addition, emergency payments to relieve immediate hardship have totalled £13million and it is estimated that £2.2million will be paid for arranging alternative temporary accommodation for policyholders.

Sarah Brodie, the ABI's seniorpolicyadviser,general insurance, said: "Storms and floods are exactly the type of unwelcomeeventthatinsurance protects against.

"When bad weather strikes, the priority for insurers is always to do all they can to help their customers recover from what can be a traumatic and costlyexperienceas quickly as possible.

"From making immediate emergency payments where needed, arranging temporary alternativeaccommodation,to organising repairs, insurers continue to support customers when storms strike."

BenWilson,ABI'sdirector of corporate affairs and climate change, said: "The Environment Agency projects that winter rainfall could increase by between six and 13 per cent, while the number of properties on flood plains is projected to double.”