AVERAGE COST ALMOST DOUBLES

As the UK costs up the damage caused following a week of storms (Dudley, Eunice and Franklin). We’ve explored our past data that shows the average pay-out for a storm damage home insurance claim has almost doubled in the past five years.  

Analysis of storm damage claims data has revealed that the average claim cost rose from £588 in 2017 to £1,011 in 2021 as the UK has been battered with increasingly extreme weather, with four rare red weather warnings in that period alone. 

Northern Ireland tops the list for volume of claims by postcode area in the past five years. Newcastle comes a close second, followed by Edinburgh in third, Birmingham in fourth, and Cardiff in fifth.  

Storm Damage costs

As of February 2022, our highest ever storm damage claim costs, in a single month, were as a result of Storm Arwen, with just under £1.1 million paid out in November 2021. We’re yet to calculate the cost of Eunice and Franklin as claims continue to come in.*

Arwen was followed by Storm Dennis as the next biggest contributor to monthly claims costs in the last five years, with over £750,000 paid out in February 2020. Storms Ellen and Francis which hit in August 2020 come in third, with over £660,000 paid out.

With the largest annual peaks for the cost of storm damage claims occurring in February and November, we’re urging advisers to use the events of the last week to highlight the importance of quality home insurance to their clients.

Following the recent storms, we’re also encouraging homeowners to thoroughly check their properties for damage and conduct any maintenance work needed to avoid compromising any future home insurance claims. This is because insurance policies are generally offered on the condition of regular maintenance and keeping the property in a good state of repair.

Louise Pengelly, Proposition Director, commented:

“Our claims data demonstrates the importance of having quality cover, as it’s clear that the cost of storm damage is increasing as we face more extreme weather events. It’s crucial that advisers communicate this need to clients, because without adequate cover, they could be paying upwards of £1,000 out of their own pocket for storm repairs.

“Many peoples’ properties will have taken a battering in recent days. Even if there’s no major obvious damage, homeowners should still be advised to thoroughly check their properties as claims made for damage caused over a prolonged period could be declined for wear and tear.”

For some useful tips to help your clients prepare for various types of bad weather and guidance on what they need do following these events take a look at our winter weather guides here.

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*Data from storms in 2022 has not yet been collated. It typically takes 2-3 months to process claims data following a storm, depending on the volume of claims and the extent of damage caused.
Analysis in release is based on 7461 storm damage claims Paymentshield handled between January 2017 and December 2021.

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