ABSTRACT
The cost of Ÿood damage is considerable and in the short term can be devastating to homes and businesses without the bene¥t of insurance. The costs can be divided into long-and short-term impacts, tangible and intangible, and also into indirect and direct costs (2005). Examples of short-term direct costs include the expenditure necessary to cope with the immediate impact of water and bringing life back to normality, including physical repair costs, replacement of damaged or lost possessions, and alternative accommodations. Those fortunate to be insured for Ÿood damage can be reassured that the majority of these costs will be paid by their insurer and they will not suffer ¥nancial hardship. However, they may be subject to longer-term costs or the risk that future Ÿoods will result in signi¥cant ¥nancial losses.
