ABI estimates the cost of flood claims at £100m

"The hard work still to come" - Nick Starling

The cost of the recent flood claims in Cumbria and southern Scotland is around £100m based on current claims, the Association of British Insurers (ABI) has estimated.

However, the ABI warned that this may increase if more complex, commercial claims, such as those for business interruption, were made.

Loss adjuster Cunningham Lindsey said the four days of flooding resulted in 1,000 claims with 25% of these being in the Carlisle postcode area.

In total 1,300 properties were affected. According to GAB Robins, 52% of the total claims were made in Cockermouth, where 500 properties were damaged.

Risk Management Solutions (RMS) has estimated that if all claims were residential, the loss range would be between £45-60m. However, if 75% of the claims were residential and 25% commercial then it would rise to £80-105m.

"The main determinant of loss will be the number of commercial properties affected, as commercial damage tends to be far more costly and business interruption coverage can kick in," said Dr Claire Souch, vice president of product management at RMS.

Nick Starling, the ABI's director of general insurance and health, said: "Once flood waters have receded and the damage to homes and businesses is assessed, the hard work begins."