Commercial property insurance claims from weather related damage have risen 730 per cent, a new study has found.
Datamonitor’s Market Developments in Commercial Property Insurance 2008 report, has revealed the cost of a recent period of unpredictable weather.
Following a fall in claims in 2006 (down 56 per cent) "windstorm Kyrill and the summer floods of 2007 were the chief contributors towards an upward spike" last year, it revealed.
Claims costs rose from £20 million to £166 million. However, the analyst said it expected "increased underwriting discipline to return to the market".
"After three consecutive years of decline, the market looks on the verge of turning the corner," it concluded.
Following recent flash floods in the West Country, the Association of British Insurers reminded those affected that "most policies cover the cost of alternative accommodation," should a property need to be vacated. "However, cost limits apply," it warned.