27 July 2007

Flooding: Insurers say flood damage bill could pass £2bn

Local authorities are counting the cost of the damage and massive clean-up operation following the floods, and are bracing themselves for another round of emergencies. Gloucestershire County Council’s highways engineers have started to clear debris from roads and are carrying out urgent inspections of the local highway network. Its staff are supporting the emergency services with the supply of pumps, fuel and sandbags. The full extent of damage to roads and bridges is yet to be assessed across counties in the west and southwest of England, but the cost is expected to be high. While some £3M has been set aside for repairing bridges and roads, Chris Evans, head of network management at Shropshire County Council, said the loss of one bridge alone in Ludlow would cost £937,000 in revenue and £700,000 in capital to replace. Flood recovery minister, John Healey, said staff were still assessing the costs of flood damage before deciding whether to apply for EU aid, which kicked in if damages totalled above £3bn. ‘We have 10 weeks from when the flood hit us, so we still have time. If we have basis for a claim then I want to see one put in,’ he told Surveyor. However, he declined to commit to extra government funding through revenue support grant for councils facing long-term rebuilding costs. Meanwhile, environment minister, Hilary Benn, announced a further £10M in emergency funding for councils hit by the recent floods, and said the extra funds would be distributed on the same basis as the initial £14M fund. The Association of British Insurers claimed the bill from the floods could top £2bn. A spokeswomen for Zurich Municipal said: ‘Right now, we are concentrating on helping those councils which are dealing with damage and emergencies. ‘It is a little too early to get a full picture on the cost and the clean up work has really just got under way.’ Nevertheless, she admitted that councils could face increased premiums because of the flood costs. ‘More money must be spent on flood protection or there will soon be no-go areas because of soaring insurance costs,’ said Neil Dancer, Birmingham City Council’s chief highways engineer. He forecast that long-term planning would demand increased flood-prevention work. As Surveyor went to press, further flooding was expected in southern England as floodwaters moved downriver to the east. Forecasters have warned of more rain over the weekend.
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