INSURANCE:LOSSES SUSTAINED on uninsured properties during the current floods are expected to be particularly high, as many people have cut back on insurance cover due to the recession.
The insurance industry expects flood damage insurance costs to significantly exceed the claims bill of almost € 100 million that followed serious flooding in August 2008, which, at the time, was a record payout.
Insurance intermediary AA Ireland warned yesterday that the uninsured losses arising from the current floods could be particularly high. “Many home owners and businesses may have reduced insurance cover in the context of the current economic downturn,” AA’s director of policy Conor Faughnan said.
In an interview on Morning Ireland yesterday, Michael Horan of the Irish Insurance Federation said that it normally took two to three weeks to estimate the total damage caused by flooding. However, Mr Faughnan said that it was already clear that this flood event was “more serious and widespread” than the floods in 2008. “This one will cost more,” he said.
Also speaking on Morning Ireland, FBD’s Adrian Taheny said the most important thing for those affected by floods was to deal with their own safety and health first, and to protect themselves from any further flooding.
“Then, as soon as they can, notify the insurance company,” he advised, adding that FBD had placed all assessors around the country in the worst-affected locations. However, he noted that over the weekend, even though assessors were available, it was very difficult for them to access some areas because of continued flooding.
Hibernian Aviva announced yesterday that it will issue advance payments to both household and business customers who find themselves in a position of extreme hardship as a result of flood damage, and who have immediate expenses to pay.