Sedgwick has released the findings from a 2020 study, funded by Flood Re, which suggests that installing the right combination of flood resilience measures will have a direct impact on the cost and duration when settling future claims, reducing both for claimants.
The study was conducted in collaboration with the University of the West of England, and surveyed 702 home insurance claims revealing insights affecting cost and duration of flood damage claims.
It aimed to enhance the evidence base for property flood resilience, reviewing in detail a sample of home insurance claims for flooding from two insurers over the years of 2013-2019.
Over three quarters of claims in the sample (78%) were reported due to flood depths lower than 500mm and 66% had flood duration of less than 24 hours.
One of the key findings was that damage from deep and prolonged flooding can cost nine times more and takes longer to repair compared to shallow, shorter-duration flooding. Floods above 300mm were six times more expensive than those below 300mm, while claims duration for floods deeper than 300mm doubled and drying times increased by a third.
River flooding claims analysed in this study cost three times as much as surface water flooding claims because they are often characterised by higher depth and longer duration. The study also found that claims for floods lasting more than 24 hours took an extra 100 days to process on average.
Sedgwick concluded that a combination of recoverable and resistant measures for homes could avoid the high cost for future floods as well as reducing the time for claimants to return to home.
Ian Gibbs, national technical manager at Sedgwick, said: “The study is an important step to examine the effectiveness of resilience measures in reducing flood risk over the long term. Our data showed that most homes were reinstated without specific mention of resilience.
“I think this is partly because there is a common misconception that resilience measures will not be economically worthwhile. However, we find in practice, where properties are flood resilient, there is a really significant reduction in claims spend and time out of the property.”
Jessica Lamond, professor in Real Estate and Climate Risk Management at the University of the West of England, added: “We already know how important it is to get people and families back in their homes quickly following a flood. This study shows how low-cost flood resilience could help achieve that goal for the majority of flooded households.”