Insurers will pay out £520m for Storm Desmond claims: ABI

In the wake of Storm Desmond, insurers have already helped almost 1,500 families get into alternative accommodation and have so far made emergency payments totalling £2.6 million, according to the Association of British Insurers (ABI).

Emergency payments are cash for affected families and businesses to spend on immediate needs, for example food, clothing, staff salaries, domestic appliances and Christmas gifts, according to the association. Costs for alternative home or business accommodation are paid directly by insurers.

The extreme weather which hit the north of the UK over the 4th and 5th of December resulted in major flooding to properties across parts of Cumbria, Lancashire and in the Scottish borders. Initial estimates suggest the final amount ABI members could pay out to affected customers might be around £520 million.

Of the emergency payments made so far, £1.7 million has been to domestic customers and £900,000 to businesses, according to the ABI.

The association also said that customers have made 23,700 claims for property damaged by either flood or storm. Just over 4,000 of these claims relate to businesses. A further 2,800 motor claims have been received and than 4,500 initial visits have been made by loss adjusters, who handle the more severe claims

"Following Storm Desmond, insurers and their representatives have been there beside those affected to provide practical help and support as quickly as possible,” said James Dalton, director of general insurance policy at the ABI.

“Being flooded is hugely traumatic and insurers have worked round the clock to get the repair process under way, provide immediate payments to people affected and find families somewhere warm and dry to stay.

"The flood waters have mostly receded but for affected families and businesses the impact is going to be felt for months. Insurers and their expert teams will be there for the long haul to help communities rebuild and repair."