New data from general insurance platform provider Paymentshield has revealed that the average pay out for a storm damage insurance claim is rising at an alarming rate.
This means that homeowners could be left seriously financially exposed if they do not have adequate cover in place, or if they’ve inadvertently compromised a potential insurance pay-out due to not keeping their property in a good state of repair.
Analysis of thousands of claims Paymentshield has handled in 2022 shows that the average cost of a storm damage claim has risen to £1744 this year, compared to £1489 in 2021 – an increase of £255.
Louise Pengelly, proposition director at Paymentshield, said: “As the UK experiences more severe weather events, it’s likely that more people’s homes will inevitably get damaged.
“Crucially, our claims data is showing that the cost of that damage is rising significantly, and if that trajectory continues, next year will be even higher.
“It’s really important that consumers understand the requirements of their policy, and advisers are well placed to offer support here.
“In particular, it’s vital that consumers are aware that – regardless of how comprehensive a policy might be – it’s their responsibility to ensure their property is in a good state of repair, or they risk a claim being declined.”
In addition to the rise in financial value, Paymentshield’s data revealed that 2022 also saw an increase in the total volume of claims for storm damage, with over 200 more than the previous year.
Ahead of the typical storm season in January and February, Paymentshield is urging advisers to take heed of this data and highlight the importance of quality home insurance to their clients, as well as the need to keep their property in a good state of repair so as not to compromise any future claims. Pengelly added: “We’re in the middle of a cost-of-living crisis, and the last thing people need right now is an unexpected expense on the basis that their policy didn’t pay-out because their home wasn’t in good shape to begin with.”
