Insurers warn premiums could soar following Welsh floods
Prime Minister David Cameron has vowed to ensure householders whose homes were destroyed by the floods that swept across the UK last weekend receive the compensation they deserve from insurers.
Cameron made the pledge during Prime Minister’s questions at the House of Commons today in response to Ceredigion Liberal Democrat MP Mark Williams who urged him to take immediate action.
Williams said: “Unprecedented levels of flooding hit the north Ceredigion communities at the weekend causing untold damage to households, businesses and the infrastructure and I thank the Prime Minister for his words of support to my constituents and I know he is aware of the speed at which Ceredigion county council, the emergency services and many in the local community rallied to ensure no loss of life.
“But can I ask the prime minister to urge all – and, critically, all – insurance companies to act now with renewed speed on this so that we can get the communities back on their feet as quickly as possible?”
Cameron said: “In all these situations there is clearly the rescue and emergency part of it, then there’s the recovery phase but I think in many ways the most difficult phase to get right is when people are going back into soaked homes with peeled plaster and all the other problems that come about and making sure they get swift action in terms of help from their district council but above all from the insurance companies and I certainly will work with him to make sure that happens in this case.”
Cameron’s promise comes at a time when insurance bosses say premiums for those living in flood-hit areas could soar following the devastation caused by torrential rain in parts of Wales.
Insurers are still assessing the damage as claims start to come in and residents’ focus turns to the cost of repairs and replacements for property ruined by water on holiday parks and in local homes.
ABI spokesman Malcolm Tarling said that the average claim for flood damage was between £20,000 and £40,000.
“As well as being very traumatic and distressing for those affected, flood damage - even a couple of inches can be very expensive,” he said. “The average flood claim can be up to £40,000.
“If you live in an area where the risk of flood is particularly great, that may be reflected in the cost the insurance and in some cases a higher excess.”
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