Storms and floods can cause lots of damage - and costs rack up fast. Here's what you need to know about sorting cover and claims. By Vicky Shaw.

Insurance firms are working hard to help repair the devastation caused by the extreme weather that's hit many parts of the UK recently. Calls to insurers' contact centres have surged, as homes, vehicles and businesses have suffered damage from flooding and strong winds.

Malcolm Tarling, a spokesman for the Association of British Insurers (ABI), says: "Insurers know that suffering storm and flood damage can be a very stressful and distressing experience.

"From making initial emergency payments, arranging and paying for alternative temporary accommodation where needed, to bringing in the best drying equipment to speed up the recovery process, their first priority is to give customers the help and support they need at a difficult time."

When making an insurance claim for storm and flood damage, and choosing cover in the future, here are some factors to bear in mind...

1. Different types of policies will cover different claims

Make sure you check exactly what your policy does and does not cover. Comprehensive motor insurance should cover the cost of repairing or replacing storm-damaged vehicles. And buildings insurance covers the structure of your home such as the walls, wallpaper and permanent fixtures such as fitted kitchens.

Insurers may also arrange temporary accommodation if a home is uninhabitable.

Brian Brown, a consumer finance expert at star ratings service Defaqto, points out that when large areas are flooded, local builders will be in high demand so you may face a wait for repairs. "Make sure your buildings insurance policy provides enough cover for alternative accommodation," says Brown, who suggests making sure it covers the cost of renting a similar property in your area for at least 18 months, to be on the safe side.

Home contents insurance will cover the cost of replacing belongings such as furniture. Brown suggests making sure you have enough insurance to replace items as new.

"If you have a major loss (like in a flood) and the insurer finds out that you are massively under-insured, they are likely to reduce the claim payout accordingly," he adds.

2. Try to provide details about damaged items

This may mean taking photos to help back up your claim. Don't worry though about having to keep all your ruined items.

The ABI says insurers don't expect customers to keep piles of damaged belongings, so once you have spoken to your insurer you can dispose of any items which pose a health risk, such as rotting food.

Also, if a damaged item is big and bulky, taking a cutting may be all you need to back up your claim, such as a piece of carpet.

3. Don't rush to throw out items that could be fixed

If there's somewhere you can store items, it may be worth seeing if they can be repaired as there are lots of drying and restoration companies out there.

4. It's still possible to get insurance if you live in a flood risk area

Tarling explains: "An industry funded scheme known as Flood Re exists to ensure that flood insurance remains available to higher flood risk home owners. Most insurers subscribe to this scheme, so check that yours does."

Flood Re was launched to ensure the availability and affordability of cover for households at risk of flooding. The scheme sits in the background, working behind the scenes with insurance companies. It works by enabling insurance companies to insure themselves against losses because of flooding. They can pass on the flood risk element of a policy on to Flood Re.

Customers still buy their cover from insurers or brokers in the usual way, but when a flood claim is made, the insurer will then be able to recover costs from Flood Re.

Andy Bord, chief executive of Flood Re, says: "Having launched in April 2016, the scheme has already helped over a quarter of a million households. Independent research shows that nearly four out of five households with previous flood claims have been able to find quotes that are more than 50% cheaper since the scheme was introduced.

"Whatever your circumstances - even if you have been flooded recently or are at risk of flooding - the right cover should be available at a more affordable price," he adds. "We would strongly encourage you to shop around - using brokers, price comparison sites and contacting insurers directly - and if you have any questions about Flood Re visit our website (floodre.co.uk)."

THREE WAYS TO TRANSFORM YOUR BUDGETING SKILLS

Done well, budgeting can help you control your spending, ensuring you are living within your means, saving money for the future and avoiding falling into debt.

But it can be hard to know where to start. Research commissioned by digital financial advice service OpenMoney suggests more than a third (37%) of us aren't budgeting our money.

To help make the process seem a little less overwhelming, Anthony Morrow, chief executive at OpenMoney (open-money.co.uk), shares some tips to help install healthy budgeting habits...

1. Waste not want not

A big part of budgeting is cutting back. Small changes to everyday habits could make all the difference.

You may already save some money by taking a packed lunch into work, but make sure it's in a reusable container, which will reduce unnecessary spending. And rather than always buying new items, give websites such as Freecycle and Gumtree a try. There may also be local community websites in your area where people are offering items for free or little money.

2. Love your local shops

Shopping at the local market and the butcher's can be a great way to save money on your monthly budget too. You may also find you buy exactly the amount you actually need, rather than being persuaded into multi-buy 'special offers' at the supermarket.

With spring around the corner, you could also try grouping together with friends or neighbours to get an allotment plot and grow your own fruit and vegetables.

3. Be mindful with money

Take stock of your financial incomings and outgoings, and make sure you understand your relationship with money and are aware of your spending.

When you make a purchase, ask yourself whether you will use it, what your current emotional state is, and how you feel about buying it.

POUNDNOTES

Financial fact: Over the four-year period between 2015 and 2019, the number of people covered by personal health insurance has declined to 1.2 million, marking a fall of nearly 10%, according to the Association of British Insurers (ABI).

PREMIUM BOND HOLDERS CAN OPT TO RECEIVE TEXT NOTIFICATIONS

Premium Bond holders can now opt to be notified by text message if they have won a prize, NS&I has announced. The Treasury-backed savings giant, which has 25 million customers, said bond holders will have the choice of receiving a text to tell them they have won a prize. But they will still need to log into their account to find out how much they have won.

CONCERNS ABOUT OVER-55S PENSION SAVERS' CASH WITHDRAWALS

The rate at which over-55s are withdrawing cash from their pension pots could leave some at risk of running out of money in retirement, insurers have warned.

The Association of British Insurers (ABI) said that, nearly five years on from the launch of the pension freedoms, the notion of "cash today, poverty tomorrow" must be avoided, as large withdrawals from pension pots could mean later life hardship.

It said there are concerns that if the current rate at which many people are typically withdrawing cash from their pension pots continues, future pensioners will be at risk of running out of money in retirement.

HOUSING SITUATION 'LEADING COUPLES TO DELAY FAMILY PLANS'

One in seven couples (13%) aged under 45 have put off having children, or not had them at all, due to their housing situation, a YouGov poll undertaken for the Affordable Housing Commission has found. And nearly a third (31%) of parents with adult children aged 18-plus living at home either do not expect them to move out, or believe it will take 10 years or more to do so.