Direct Line reveals £110m bill from flooding could go higher

The owner of insurers Churchill and Direct Line has revealed a bill of up to £110m so far from the storms and extreme flooding that have battered Britain since the start of the year.

By The Newsroom

Published 27th Feb 2014, 08:43 BST

Direct Line Group, which is a major employer in Leeds, estimated claims from households alone were set to be between £70m and £90m, while damage to businesses and loss of earnings for firms is set to cost it an extra £20m.

It said the figures compared with an average of £80m in weather-related claims expected annually and stressed the actual financial hit would remain unclear until flood waters recede, warning it could rise even further due to the high levels of ground water.

The impact comes on top of £69m in UK home insurance weather claims last year – £65m of which were incurred in the fourth quarter alone due to the barrage of storms suffered over Christmas.

Direct Line has been running a 24-hour consumer line throughout this year’s flooding, with additional teams in call centres and on the ground visiting affected policyholders.

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