2012 was the second wettest year on record in the UK, according to the Met Office, and caused problems for many homeowners, businesses and motorists. The Association of British Insurers stated that the flood and storm damage had cost insurers £1.19bn. The total number of claims reached 486,000 and on average cost insurers £18,200 per flood-damaged property. The £1.19bn payout was slightly higher than it was in the year 2000, but was still a great deal less than the £3bn bill from the floods that had impacted the country in 2007.The various claims were broken down in to:
- Residential property – 411,300 claims totalling £690m.
- Commercial property – 47,000 claims totalling £373m.
- Vehicle damage – 26,800 claims totalling £84m.
- Interruption to business operations – 1,200 claims totalling £40m.
The Association of British Insurers has been in talks with the government, searching for a deal to avoid 200,000 homes being left without flood cover. An agreement was made in 2008 that requires insurers to provide cover for high-risk properties while work is carried out to improve flood defences in these areas. The ABI want the government to share financial risk on areas with a 1 in 75 chance of flooding in any given year. However, with the current agreement ending in June, the government is yet to find a solution that won’t put a burden on the taxpayer.The contents of this article are intended for general information purposes only and shall not be deemed to be, or constitute legal advice. We cannot accept responsibility for any loss as a result of acts or omissions taken in respect of this article.Setfords Solicitors are a national full service law firm, with property solicitors in Guildford and across the country.