The Associate of British Insurers (ABI) has estimated that claims due to the wet weather earlier in the year are likely to result in £446 million being paid out.
This is the equivalent of £6.7 million a day (covering the period 23 December 2013 to 28 February this year).
Taking into account the projected cost of storm damage claims over the same period, insurers will be paying an estimated £1.1 billion to help their customers recover from the effects of the bad weather.
Between 23 December 2013 and 28 February this year insurers received 17,500 flood claims: 9,000 from homeowners, 5,400 for flooded vehicles, and 3,100 from businesses.
Of the £446 million, an estimated £276 million is expected to be paid to flooded homeowners; £149 million to business owners, and £22 million to vehicle owners.
Flooded customers have already received emergency payments of £27 million and insurers have arranged temporary alternative accommodation for over 2,100 flooded households at a projected cost of £24 million.
Loss adjusters have made over 6,500 visits to flooded properties to assess the damage, organise emergency payments, and get drying out and repairs started as quickly as possible, the ABI said.
In addition to flood claims, Insurers received 421,500 storm claims; 361,600 from homeowners, 15,200 for storm-damaged vehicles and 44,700 from businesses.
Otto Thoresen, the ABI’s director general, said: “The flood waters may have mostly receded, but for many the distress of being flooded remains raw. Insurers and loss adjusters are playing a crucial role in the recovery process. A badly flooded property can take months to become habitable again, so insurers continue working around the clock to ensure that the drying out process is completed as quickly and as safely as possible.
“While of course this was a serious and significant bad weather event the current flood damage costs remain well below the severe floods of 2007 when insurers paid out £3 billion to customers.”