During the winter of 2013 – 2014 there has been an unprecedented amount of rain which has caused a huge amount of flooding in the UK. The water levels have started to subside and we can now start to assess the impact from the resulting flood damage that has occurred. Although many property owners and insurance companies could be set to lose out there are also a few that will benefit from the recent flooding.
Who are the winners and who looses out from the recent floods in the UK?
Property Owners and Tenants
One of the largest groups to lose out those whose homes and businesses have been damaged. With thousands of properties in need of repair, insurers are estimating an average between £30,000 and £40,000 for restoration costs per each property.
Many homes were evacuated including properties which in the end actually escaped and flood damage. Residents had to find alternative accommodation, many of which had to be payed for out of their own pockets in the hope of claiming back through their insurers.
As well as extra financial costs flood victims have had to bear, there are the losses they have endured in time and effort.
Builders and Local Tradesmen
It goes without saying that building companies will be one of the main beneficiaries. The aftermath of the floods will boost the demand for Flood Restoration Companies and other types of local tradesmen including plasterers, joiners etc.
It will also provide a boost to the economy for many retailers as damaged furnishings and appliances will need to be replaced. As well as the flooding, storms would have caused damage to buildings, resulting in roofs needing repairing and fencing in need of replacing.
Flooding and storm damage had left many properties without power. This has led to many consumers becoming entitled to claim compensation from their suppliers. Power companies have also had to employ extra staff to restore power as well as the costs to replace damaged infrastructure.
The Energy Network Association have reported that during Christmas alone, there were 750,000 homes suffered from power cuts. Water companies have also had to endure problems with flooded sewers and water contamination.
Over the next few months we should see some figures starting to come out from the insurance companies as to how much the recent flood damage has cost them so far. The Government has already summonsed many of the big insurance companies to Downing Street to encourage them to settle claims in the shortest time possible.
Insurance companies are businesses themselves, who are under pressure to return a profit. Shortfalls can be achieved by either increasing the costs of home insurance policies or by damage limitation in the amount of money they pay out in settlements to policy holders who have suffered from flood damage.
As reported by The Sunday Times recently, insurers are already looking to save costs by refusing to validate insurance claims where groundwater flooding has been a factor in damage to properties.
As a result, many policy holders are now reaching out to their local MP’s, insurance regulators and independent loss adjusting companies for help in a bid to overturn these underhand tactics implemented by their insurers.
After the UK flooding in 2007 insurance companies paid out around £3bn and in 2012 flood damage cost insurers £4bn, many homeowners will be worrying about how much their home insurance premiums will increase by when their policies are up for renewal.
Result: Could go either way!
Flooding has affected already struggling farmers who have had crops destroyed. For those farmers who have been unaffected this could actually help them as they may be able to demand a higher price for their produce.
Not only that the disruption caused to transport has interrupted the supply chain making it difficult to deliver food and bedding to livestock.
Result: Some win and some lose
Property Been Damaged by the UK’s Recent Floods This Winter and Need Help?
Probuild Contractors Network are a dedicated flood restoration company with local experts based in all areas of the UK: http://probuildcontractorsnetwork.co.uk
AMPM are one on the United Kingdoms only Independent Loss Adjusting Companies. They offer free flood insurance claim help and advice and in most cases a free loss adjusting service. One of the main benefits of using the services of AMPM is that they work on your behalf rather than your insure: http://www.ratedlossadjusters.com