Household insurance costs to rise after UK floods

The devastating floods that have hit the UK in recent months have prompted some of Britain’s leading insurers to raise the cost of their household premiums by an average of 10%, according to reports.

Norwich Union, the UK’s biggest home insurer, and Lloyds TSB are said to be introducing double digit increases after the natural disasters in June and July left the industry with claims totalling around £4bn (€6bn).

Insurers Direct Line and Churchill are expected to follow suit although their increases are not known, the Times reported today.

A spokeswoman for Aviva, Norwich Union’s parent company, told the newspaper: “We had the premiums under review before these events. There will be an increase in premiums as the flooding is one of the elements causing claim inflation.

“The increase will on average be 10%”

Norwich Union said earlier the recent floods would cost it £165m (€245m). This is in addition to the £175m (€260m) it will pay out for the floods in the north of England during June.

Igal Mayer, chief executive of Norwich Union Insurance, said: “Having visited Gloucestershire myself, I’ve witnessed at first hand the traumatic and emotional impact the floods have had on our customers.

“We’re bringing in additional contractors and specialist equipment to ensure repairs are carried out as quickly as possible, and we’re in discussions with local authorities to find the best solution to providing temporary accommodation for those who have had to leave their homes.