Insurers are bracing for a wave of claims after Storm Boelo brought flooding, falling trees and widespread power cuts to the UK and Ireland, coming just a day after Storm Austen.
A 60-year-old man died after being hit by a falling tree near Castle Douglas in Dumfries and Galloway on Sunday morning. Police said there were no suspicious circumstances. Two women were injured by a falling tree in Aberfeldy, Perth and Kinross, and two people were taken to hospital after scaffolding collapsed onto a street in Streatham, south London.
Gusts reached 85mph at Machrihanish in Argyll and at the Needles on the Isle of Wight, and 84mph at Capel Curig in Conwy. More than 130mm of rain fell at Cluanie Inn in the Highlands.
The Energy Networks Association said 838,700 properties had been affected by power cuts across the two storms. As of Sunday afternoon, 161,400 were still without power. Some properties in Cumbria are not expected to be reconnected until Tuesday. In Ireland, around 5,000 premises remained without power on Sunday evening, mostly in the north-west.
Coastal flooding hit Largs in Ayrshire on Sunday morning, with water running through the town centre. A boat was washed onto the street in Gourock, and police helped 15 people stuck at a flooded caravan park in Ballantrae. On Dumbarton’s high street, several shops were badly flooded overnight, with stock and shelving left in muddy water.
Rail, air and ferry services were heavily disrupted over the weekend. ScotRail said most services would run as normal on Monday, though several Highland routes remained affected. A yellow wind warning has been issued for much of Scotland, and parts of northern England and Northern Ireland, on Tuesday, as another Atlantic low arrives.
No insurer or ABI estimates for the two storms had been published by Monday morning. For comparison, Storms Dudley, Eunice and Franklin in February 2022 generated around 177,000 claims, with payouts estimated at £497 million, according to the ABI.
The close timing of Austen and Boelo raises questions for insurers and policyholders alike. Home policies usually apply an excess to each claim. A property damaged by both storms could face two excesses, unless the insurer treats the damage as a single loss. Showing which storm caused which damage may not be straightforward.
For insurers, the same question arises in their own reinsurance. Catastrophe reinsurance typically uses an hours clause, which groups losses within a set period, often 72 hours for windstorms, into a single event. Whether Austen and Boelo fall into one event or two will affect how much each insurer retains before its reinsurance responds.
Property claims will dominate: roofs, fallen trees, and flooding in coastal and town-centre areas. Motor claims will follow from trees falling on vehicles, which are generally covered under comprehensive policies. Caravan and leisure marine claims are likely too, after boats broke their moorings and coastal parks flooded.
For businesses such as the flooded shops in Dumbarton, the issue is business interruption as well as damage. Physical damage at the premises will usually trigger cover, but losses from power cuts or road closures alone often won’t, unless a policy has a specific extension.
Liability claims may also arise. The scaffolding collapse in Streatham and injuries from falling trees could lead to claims against contractors, landowners and occupiers, if the injured parties can show the incident could reasonably have been prevented.
Brokers should prepare for a cluster of claims this week, with more weather on the way. Clients should photograph damage, keep receipts for emergency repairs and record which storm caused what, as the two-storm question may affect excesses.
Clients still without power may be entitled to compensation from their network operator, separate from any insurance claim, although operators can claim exemptions during severe weather. Food spoiled in freezers is often covered under home contents policies.
For commercial clients, brokers should check business interruption wordings now, particularly for utilities and denial of access cover, before Tuesday’s storm adds to the disruption.
