25% of summer flood claims settled

Wednesday, 03, Oct 2007 01:40

Some 25 per cent of insurance claims have now been settled in relation to the flooding devastating parts of England earlier in the year.

Just over 100 days since floods first hit parts of north and east England - including Hull, Sheffield and Doncaster - over one in five of the 130,000 claims made have been settled.

Commenting on the figures after a meeting with the Association of British Insurers (ABI), Floods Recovery minister, John Healey, said: "While I appreciate this will be of little comfort to those still living in temporary accommodation it does show real progress and I want to thank the industry for their efforts to date, and they made clear their commitment to maintain this momentum over the coming months."

The minister also moved to dispel reports some areas of the country had been permanently excluded from flood insurance after events in the summer.

"Over the last few months there have been a number of reports in the media about areas being blacklisted for flood-related insurance cover and insurance renewals refused," continued Mr Healey.

"The ABI today confirmed to us that no areas have been blacklisted, existing cover has not been withdrawn in any area and there is no evidence that policy renewals are being refused."

The government has so far made £57 million available in assistance to those affected by the floods.

However, the insurance industry is also playing a vital role.

"Since the flooding in Hull, Sheffield, Doncaster and surrounding areas 101 days ago, insurers have been dealing with over 130,000 claims for homes, businesses and motor vehicles," said Stephen Haddrill, director general of the ABI.

"The cost of claims from flooding in June and July is expected to exceed £3bn.

"Ministers appreciated the enormous contribution of Britain's insurance industry in dealing with the trauma and loss caused by these floods.

"Without these efforts, huge additional costs would fall on the taxpayer, way above the £53m currently committed."