'Predictable' floods may not be covered

INSURANCE CLAIMS:HOUSEHOLDERS IN certain parts of the country may find it more difficult to get insurance against flooding in future as it was becoming a "predictable" rather than an unexpected event, according to insurance industry sources.

As companies receive thousands of claims from households and businesses, they expect a further surge in the days ahead

Hibernian Aviva reported 1,042 calls up to 5pm yesterday as a result of the flooding. The company’s Galway call centre normally deals with 2,000 in a week.

The final costs are likely to be higher than the almost €100 million record paid out following floods in August 2008. Figures supplied by the Irish Insurance Federation (IIF) showed that, of weather “events” for the last 12 years, the highest payout was €98 million in August 2008.

The second-highest payout was €84 million for storm damage in December 1997. Industry sources pointed out insurance is for “unexpected events”, but flooding was becoming “predictable” and every year insurance was being paid out for the same flooding event.

They indicated companies could take a more robust approach to evaluating claims, and could also withdraw cover from a greater number of known flooding areas.

Companies are working to ensure claims are handled quickly and the IIF has advised householders to take precautions to prevent further damage to their property by moving furniture and valuables to an upper storey.

IIF non-life manager Michael Horan said it would take up to four weeks to establish the full cost of the weather damage.

“There is no doubt that flooding has already caused extensive damage particularly in the south and west of the country. However, it is too early at this stage to estimate the cost of the flood – this figure will not be available for at least three to four weeks.”