Bill for losses from floods could be more than £100 million

It has been estimated that the bill for the losses that were suffered in the recent and devastating floods in Cumbria could come to more than £100 million, according to a recent report. Hundred and homes and businesses were affected after flood defences failed to provide protection when rivers burst their banks in Cumbria, Dumfries, and Southern Scotland, causing devastating levels of damage and huge losses.

In the space of just twenty four hours there was more than twelve inches of rainfall in Cumbria. However, it is being reported that whilst the floods were devastating and did cause huge amounts of damage, they were not as bad as those seen in 2007 in the Midlands and Yorkshire, where losses amounted to around £3 billion.

The Association of British Insurers said that whilst the flooding that was seen recently was tragic and devastating it was not unexpected for this time of year, and was on a scale that the industry was able to cope with. Insurance companies have agreed to cover high risk properties but have insisted that the government invests in more effective defences against flooding.

Whilst the cost of the most recent floods in Cumbria is still being counted it is thought that the losses will amount to around £100 million. This is being likened to the flooding that was seen in Carlisle in 2005, in which losses amounted to around £250 million.

Following the floods in 2007 insurance providers were hit with huge claims, with losses amounting to billions of pounds, which is something that the industry was not prepared for either practically or financially according to the Association of British Insurers.

However, with the losses expected from these recent floods the industry of confident that it will be able to cope in terms of finances.

Tags: scotland, insurance providers, Association of British Insurers, Insurance, flood, environment, weather, Disaster_Accident