Home insurance flood costs reach £1.5bn

Posted : 09-07-2007

The estimated cost of home insurance due to this summer's unexpected floods has reached £1.5 billion, according to the Association of British Insurers (ABI).

With around 7,000 businesses and 27,500 homes thought to have been affected by the excess rain, the ABI has increased its expectation of the amount of claims arising from the damage.

And while the unfortunate circumstances may have already incurred repair work in some areas, those left unaffected may want to reconsider their home insurance policies to protect against financial difficulties should the extreme weather continue.

"We will be talking to our customers about how we can help them avoid the trauma of a similar event in future, for example through using more flood-proof building techniques," director general of the ABI Stephen Hadrill added.

Last week saw flood-hit locations in Doncaster welcome a visit from Prince Charles, who took to a small boat in order to transport himself throughout the towns.


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