Money News

Winter’s £650m insurance bill

The £650m cost of snow and ice this winter, highlights how important home insurance can be.

Brits made £605m of insurance claims this winter.

Heavy snow and freezing temperatures led to 335,000 claims for damage to homes, cars and businesses – an average pay-out of £1,805 per claim – according to industry figures.

The coldest winter in 30 years led to 268,400 car insurance claims for accidental damage as icy roads caused accidents across the nation.

Home insurance claims were double the usual level with 60,200 claims worth £194 million.

A typical claim involved roof damage caused by the snow.

Nick Starling, director of general insurance at the Association of British Insurers, said: “Insurers have paid out nearly £1 billion to customers following bad weather this winter, as the heavy snow came weeks after the flooding in Cumbria, which led to insurers paying out £200 million in flood claims.”

He added: “Insurers will always respond quickly to the large number of claims that often result from bad weather.

“From dealing with snow damaged roofs, burst pipes, to repairing or replacing vehicles damaged by treacherous driving conditions, insurers helped their customers get through the snow and the freezing temperatures.”

Chris Eagle, commercial manager at Creditchoices.co.uk, said: “The winter weather shows how important home insurance can be, but the recession is leading people to cancel polices to save money.

“Data from the ABI show 22% have stopped home contents insurance and 17% have cancelled building insurance. However, if you shop around for a better deal or look at how much cover you really need, you can cut outgoings and stay protected.”