Flooding claims could hit €244m

INSURANCE companies expect that claims arising from the November floods will cost €244 million.

The Irish Insurance Federation reckon that household insurance claims will cost the industry €77m while commercial property claims will cost €159m.

The cost of motor claims has been put at €8m.

A total of 8,514 claims have been made – 4,629 household, 1,541 commercial property claims and 2,344 motor claims.

Insurance costs resulting from damage caused by flooding in August 2008 totalled €96m and represents the second largest pay out in recent times.

IIF non-life manager, Michael Horan, said the response by insurers to one of the most severe weather event was swift and professional.

“Emergency helplines were immediately advertised by insurers in the media while companies reassigned staff in order to speed up inspections of flood damaged properties and to expedite the processing of claims,” he said.

The IIF has advised householders to keep their homes well heated in the current icy spell to avoid burst pipes.

And those leaving their houses unoccupied are being urged to leave their heating on a timer to prevent frost damage to water pipes.

The IIF said it was too early to estimate the cost of the freezing weather at this stage and that the figure would not be available for at least three to four weeks.

The cost of claims for damage caused by freezing weather in January last year amounted to €40m. Freezing weather in December 2001 cost the industry €30m.

A number of insurance firms have admitted they are bracing themselves for one of the worst winters for motorists in decades because of the recent atrocious weather conditions.

The IIF is the representative body for insurance companies in Ireland representing 63 member companies.