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Member, Beacon International Group, Ltd.
LONDONThe commercial insured losses from the July floods that hit parts of England are likely to be lower than those caused by an earlier period of flooding, because the businesses affected were generally smaller, according to modeling firm Risk Management Solutions Inc.
Newark, California-based RMS said that the floods that affected the United Kingdom in June and July could cause total insured losses of between £2.25 billion ($4.55 billion) and £3.25 billion ($6.58 billion).
The modeling firm said in a statement that total insured losses from the recent July flooding are likely to be between £1.0 billion ($2.02 billion) and £1.5 billion ($3.03 billion), while the floods in June are expected to cause total insured losses of between £1.25 billion ($2.53 billion) and £1.75 billion ($3.54 billion).RMS said that repair costs are likely to be affected by demand surge. "There is currently a shortage of drying equipment, made worse by the fact that it is still needed in areas affected by the June flood," said Claire Souch, senior director of model management at RMS, in the statement.
"The recent power cuts means that, even when the dryers have been available, they have been unusable," she added. "This results in properties remaining flooded, which increases the damage, and may also force people to find alternative accommodation. All these factors increase the costs for insurers," Ms. Souch noted.