Is a property damage recovery possible in storm damage cases?

We are all living through a period of heightened climate uncertainty. This can be seen in devastating hurricanes which have hit areas of the Caribbean and the USA, the flooding in Central Europe and wildfires in Portugal in 2024 alone.

Here in the UK, we are seeing the beginning of an ever longer and more severe storm season, with Storm Darragh recently causing widespread disruption and damage.

The prevalence of property damage storm claims has been brought into sharp focus by Censuswide, on behalf of Aviva, who have established that 40% of homes have experienced the impact of extreme weather in the last five years. The cost of such claims is ever increasing, with Direct Line’s 2022 financial results highlighting a £149 million cost of weather related events.

On a global level, Bloomberg Intelligence reported that 2023 was the fourth year in succession where global insured losses stemming from natural disasters were projected to exceed US$100 billion.

Due to the exceptional nature of storms and the damage they cause, a recovery action will not always be an option. However, there are a number of ways in which insurers can potentially recover sums paid out following damage caused by extreme weather. We deal with the three most common.

Faulty workmanship or design

Properties being built or renovated should be constructed to handle reasonably foreseeable events. Extreme weather events cannot be said, within certain bounds, to be unforeseeable.

Such events should be taken into account during the design and completion of works. Where there has been a failing on this front, a claim against those involved in the design and construction could be possible.

For example, a new build property and the surrounding development should have sufficient drainage to ensure that water does not enter the property during heavy rainfall.

Claims against water companies

Flooding events are affecting city centres across the country with major flooding impacting private properties and transport infrastructure. A high profile recent example is the flooding in London on 23 September 2024, which resulted in a sinkhole opening on the pitch at AFC Wimbledon Football Club, with that incident alone costing up to £1 million to repair. Censuswide have found that 12% of homes have experienced flooding in the last five years.

Water companies are responsible for managing and maintaining surface water drainage facilities. Claims against them in relation to flooding incidents can be difficult, but are not impossible to pursue. This is because there is no strict liability against water companies regarding their sewers being unable to deal with the volume of rainfall or having a fault in the system such as a blockage (unlike if a mains pipe fails and causes damage).

However, where a water company has been negligent in their management of the drainage system there may be a claim. For example, if the water company is aware of a lack of capacity or a fault in the system, and they fail to act within a reasonable timeframe.

Claims against neighbouring property owners

High winds can cause objects to hit neighbouring properties. They can also cause branches to fall from trees, or even an entire tree to collapse. High winds in the East Midlands in April 2024 caused a number of trees to collapse, and dislodged parts of roofs.

A neighbour may be liable where it is foreseeable that an object, if not correctly secured, could become dislodged and come into contact with a neighbouring property. For example, where parasols or trampolines have been left out in windy weather.

Property owners have a duty to inspect and maintain trees on their land; the trees should be maintained to the standard of a reasonably prudent landowner. This is particularly relevant for more sophisticated land owners such as local Councils which will own large stocks of trees on road sides and park areas, and have a greater level of knowledge as to their responsibilities around maintenance.

Such landowners should have inspection regimes in place, which should prioritise inspecting trees which risk causing injury and damage to property. Failures within this regimes could lead to a claim against the landowner.

Comment

Though recoveries in cases of extreme weather can be difficult to pursue, they should never be ruled out solely on the basis that a storm was at the heart of the cause. With instances of extreme weather occurring more frequently and resulting in costlier losses, insurers should ensure that all avenues of recovery are fully considered.