'Big Freeze' leaves insurance companies facing €5.5m bill
INSURANCE COMPANIES are due to pay out a staggering €5.5 million to householders and commercial property owners in County Wexford who suffered damage from burst pipes during the big freeze in January.
On top of this, almost three quarters of a million Euro has been claimed in the county for damage caused by flooding during the month of November.
Nationally, the two weather events have resulted in property insurance claims amounting to €541 million, more than the combined cost of all previous weather events during the past decade which stand at €358 million.
The figures have just been published by the Irish Insurance Federation which is the representative body for 63 insurance companies around Ireland.
Snow and icy conditions during the month of January caused burst pipes in homes and businesses throughout County Wexford, leading to flood damage in many cases.
The episode resulted in a huge haemhorrage of water from Wexford County Council's public water supply and rationing had to be introduced for a short period. The number of subsequent household insurance claims made in County Wexford during the month was 514 while commercial claims reached 105.
The pay-out for household damage is expected to amount to ¤ 4,032,000 while the cost of commercial property damage is ¤ 1,482,000, giving a combined total for the month of ¤5,514,000.
County Wexford wasn't as badly affected by last November's flooding as other areas in the West of Ireland but household and commercial claims have still amounted to ¤754,000.
From November 9 to November 30, the number of household flooding claims was 90 and there were 26 claims for flooding damage to commercial premises.
The household total is ¤444,000, according to the IIF while the commercial total is ¤ 310,000. The Chief Executive of the IIF, Mike Kemp said the insured cost of the two recent weather events was 'very stark' and while it has implications for the Irish insurance sector, he stressed the resilience of insurance companies in meeting the needs of customers in what he described as a very traumatic time for many people.
However, he pointed out that the cost may have insurance implications for the future in relation to weather-related claims.
'With the increasing frequency and severity of extreme weather conditions, questions inevitably arise as to the future cost and even insurability of some risks, particularly flood risk in some parts of the country', he said.
He called for a concerted national approach to address issues such as planning and development improvements to take greater account of flood risks, investment in flood defences and effective management of watercourses and drainage.
