Insurance Losses From UK Winter Could Reach $1 Billion

The Association of British Insurers (ABI) said freezing weather in the United Kingdom could cost insurers $1 billion this winter.

Last year, Britain's insurance companies paid just over $1 billion to homeowners following the coldest winter in 30 years, the ABI said.

Damages from burst pipes and leaks could total $11 million per day this year, the association warned.

In the United States, winter storms cost insurers $770 million last year, which was actually the lowest total in eight years, according to the Insurance Information Institute.

Winter storms are the third-largest cause of catastrophe losses in the U.S., accounting for 7.4 percent of all losses from 1990-2009, according to the Insurance Services Office (ISO). Average losses per year are about $1.25 billion.

Freezing weather in the United Kingdom has already caused school closures and travel disruption. There was some thawing out of the area over the weekend, but more freezing weather is forecast, according to local news sources.

The Institute for Business and Home Safety (IBHS) recommends keeping the attic ventilated and slightly warmer than outside to prevent ice dams on roofs, which block water from draining.

IBHS also said to insulate water pipes, seal cracks in outside walls and foundations, and have the heating system serviced.