Insurers will be hit by 100m flood bill

DAMAGE from the floods in Cumbria and south Scotland could cost insurers more than &pound;100m, the Association of British Insurers (ABI) said yesterday.<br /><br />The body also warned that up to 1,000 claims had been received by insurers already, but that it was too early to say what the total damage bill will be. <br />The ABI is urging those hit by the floods to contact their insurer as soon as possible. <br /><br />Over 1,300 homes were left without power or water after being pummelled by the bad weather, and a typical claim is likely to cost in the range of &pound;20,000-&pound;40,000.<br /><br />The floods of 2007 cost insurers &pound;3bn, as 55,000 homes were hit, but this year&rsquo;s are not thought to have been as wide-reaching or devastating. <br /><br />There are 19 flood warnings out in force around the UK, particularly in south-western and northern parts of England, Scotland and Wales.<br /><br />Nick Starling, the ABI&rsquo;s director of general insurance and health, said: &ldquo;Events like flooding highlight why insurance is so important.&rdquo;<br /><br />&ldquo;The first priority for insurers will be to ensure that every claim is dealt with as quickly as possible and they will do everything they can to help customers recover,&rdquo; he added.