Claims flood in as insurers mop up burst pipes

Published on Tuesday 9 February 2010 20:23

INSURERS are experiencing unprecedented levels of home insurance claims as households count the cost of burst pipes caused by recent icy weather.

The UK insurance industry has received almost 16,000 home insurance claims relating to water damage caused by the coldest winter in decades, Sainsbury's Finance said yesterday. Those claims were worth an estimated 35 million, with an average claim between 15 December and 21 January of just over 2,200 for damage caused by burst pipes.

Ben Tyte, manager of Sainsbury's Home Insurance, said: "We experienced a similar surge during last year's cold snap, but this year it has been much more prolonged and intense. And with more cold weather predicted, we expect to see more claims linked to water damage."

More than one in six recent home insurance claims at Halifax Home Insurance related to burst pipes, up from the usual one in ten. And Axa has reported a similar increase in claims related to burst pipes in recent weeks, with both homes and possessions affected. It said the average claim was for damage worth 30,000, with costs reaching six figures where homes had been ruined by burst pipes.

A high proportion of the claims were made by homeowners who turned off their heating before going away. Just 8 per cent of homeowners believe a burst pipe might be a problem while away on holiday during winter, and only a third take basic precautions, such as leaving the heating on, according to Axa research.

Insurer More Than has received 50 per cent more home and motor insurance claims than typical for this time of year, due primarily to burst pipes and car accidents caused by the weather, while motor insurance claims with Swiftcover were up by 75 per cent in the weeks after Christmas.

Nick Kidd, head of home insurance at Axa, said: "Our research shows that people don't realise the importance of protecting their water systems from freezing conditions. Not only does burst pipe damage have financial implications, especially if insurance is not in place, but it can also cause huge emotional trauma from ruined personal belongings."

With the Met Office forecasting a fresh cold snap, a new wave of claims is likely. And the cost of both home and motor insurance may increase as a consequence of the abnormally cold weather, according to the AA, which recently reported a record rise in average premiums last year.

The average comprehensive cover premium rose by 7.2 per cent in the last quarter and by a record 18.7 per cent to more than 1,000 in 2009 as a whole. There were similar increases in buildings and contents insurance premiums after a high number of severe weather claims last year.