The big freeze costs insurance sector £40m
Home insurance companies have reported a 450 percent surge in the number of home flooding claims caused by frozen pipes during the winter months of 2008-2009.
AA Insurance has estimated that homeowners have lodged over £40 million in claims throughout the UK after icy weather froze water in pipes and roof tanks. This causes the pipes to burst and flood properties.
Simon Douglas, Director of AA Insurance, said: “This year’s big freeze is a reminder that burst pipes can cause serious water damage to both buildings and contents such as carpets and furniture.
“The ‘escape of water’ inside the home is the single biggest cause of home insurance claims, accounting for around one in five claims in a normal year.”
The level of claims are expected to peak in winter due to freezing but the big freeze in January 2009, which saw temperatures drop to minus 15 degrees or lower in many parts, as well as the current snowy spell, have seen claims soar. Pipes most exposed to the cold are a particular risk, including those supplying outdoor taps and plumbing in unheated basements, lofts and exterior walls.
According to the Association of British Insurers, ‘escape of water’, which includes burst domestic pipes as well as broken joints and valves, blocked drains and taps left running resulted in £80 million in insurance claims during the whole of 2007.
The total for last winter was around £30 million, but the first six weeks of 2009 alone have seen claims rising an extra £10 million on top of this. However, there are thoughts the rise in home claims could be in line with general claims increases caused by the recession.