Financial News

  • 12 February 2014, 10:36

Flood And Storm Bill 'Could Top 1bn'

Storm and flood-hit Britain could be left with a bill for more than 1bn, according to the latest estimates.

"Big Four" accountancy firm PwC said that by the end of January the estimate for insured and uninsured items ruined by heavy storms and rising floodwaters was 630m.

But if rain continues falling on waterlogged ground that figure could almost double, according to global insurance firm Hiscox.

"Many parts of the country are now saturated, which means further flooding is inevitable as the rain continues to fall," division head Justin Gott told Sky News.

"Parts of the Thames are now flooding too, effecting higher density areas.

"The cost of the floods is already estimated to be over 630m, and if the rains continue into March or April, it's not impossible for this to become a 1bn event."

PwC's estimate of 630m covers the period of December and January, and includes 130m to be borne by Britons for uninsured items.

Last Saturday, PwC released an estimate which put the cost to insurers at around 400m, but on Monday that figure was boosted by 25% - another 100m - as floodwaters continued climbing.

"Although there was a lot of rain in January and clearly people have been adversely impacted, the damage to the UK was not nearly as bad as the damage caused by the weather in December," PwC said.

"However, we have revised our total cost estimates upwards, taking into account the January weather."

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