Insurers' Storm Damage Claims Rejected Due to Inaccurate Assessments

Homeowners, Ron Williams and John Hopkins, from Swansea, had their claims for storm damage on their buildings policies rejected by Prudential and Eagle Star, respectively. The insurers cited the age of the houses as the likely cause of the breakage, which is not covered under the terms of the policies. However, the way in which insurers determine whether to pay out for storm damage is a very grey area. The Meteorological Office admits that there is a considerable margin of error in its figures, and the technology used to measure wind speeds varies in different areas.

Key Takeaways:

• Prudential and Eagle Star rejected claims for storm damage on buildings policies, citing the age of the houses as the likely cause of the breakage.
• The Meteorological Office admits that there is a considerable margin of error in its wind speed figures, which are used to determine whether a payout is necessary.
• Insurers only contact the Met Office if there is some doubt about the severity of the weather, and often rely on regional loss assessors to make decisions.
• Eagle Star consulted the Met Office when deciding one claimant's claim, but failed to mention that the Met Office recorded gusts of up to 47mph in the area.
• Buildings policies make no provisions for strong gusts of wind, and insurers will refuse to pay for structural damage if they think it has happened because of age alone.
• Regular maintenance and surveys can help to prevent allegations from insurers that the damage is down to wear and tear.
• The Met Office will provide a report detailing the precise weather conditions at the time of the damage for a varying fee, which can be presented to insurers as evidence to strengthen a claim.

Statistics:

• 32mph: The maximum wind speed recorded by the Met Office on November 13.
• 23mph: The wind speed recorded by Eagle Star as the maximum speed on November 14, which was later refuted by the Met Office's recorded gusts of up to 47mph.
• £293: The cost of repairs to Ron Williams' roof.
• £150: The ex-gratia payments made by Prudential and Eagle Star to John Hopkins and Ron Williams.
• 4 miles: The distance between the Met Office recording site at Mumbles Head and the location of Ron Williams' house.

Sources:

• The Sunday Times (1994)
• The Meteorological Office
• Prudential
• Eagle Star
• The Association of British Insurers (Tony Baker)