UK freeze claims cost insurers £1.4bn

Insurers paid out £1.4bn in 'big freeze' insurance claims in the UK between 24 November to 31 December 2010, according to the ABI.

The costs relate to motor, home and business claims, of which there were 467,000 during the period.

190,000 claims were for damage to homes and businesses (75% domestic; 25% commercial), costing £900m.

There were 278,000 motor insurance claims costing £530m.

Of the property claims, 103,000 were for burst pipe damage, at a total cost of £680m. This figure was up 35% on the amount paid out for burst pipes during the whole of the previous winter.

Northern Ireland was hit hard by burst pipe claims, resulting in 6,400 claims worth £40m. In Scotland, there were 31,000 property damage claims costing £90m.

The ABI estimated that each day during the coldest December on record, insurers dealt with more than 12,000 claims at a cost of £38m.

“During a similar bout of freezing temperatures the previous winter, insurers paid out £700m in weather-related claims," said Nick Starling, the ABI’s director of general insurance and health.