The floods that devastated the south and west of Ireland last month are to cost up to €200m, more than twice the previous record, the Sunday Tribune can reveal.

An estimate of the total cost of the damage has been compiled by industry sources. Official figures are due to
be finalised and released later this
week.

It is feared that the sheer level of damage will hugely increase the cost of premiums for both private and commercial insurance in 2010, on top of the threat of further flooding.

The Irish Insurance Federation (IIF) said the government's commitment to tackling weather defences in Ireland has fallen far short of the mark.

"We are now in a position to survey the insurance companies to put an industry-wide estimate on it early next week," said Michael Horan of the IIF. "People have made their claims and insurance companies have mobilised their loss adjusters."

Nothing on this scale has ever happened in Ireland before – the previous record insurance payout for flooding was €96m in August 2008. "This will be well in excess of that," Horan confirmed.

"Premiums are dictated by the cost of claims. Insurance companies expect a certain amount of bad weather when they are pricing but this particular event has exceeded all expectations.

"In 2008, property insurers paid out €180m in total, not just from flood and storm damage but also theft, fire and other claims under household policies.

"The difference is that [€200m] is for just one weather event in November which is on top of all the other claims made throughout the year."

Commercial costs will also be high following recent flooding, especially
when stock and loss of profits is factored in.

There are also serious concerns that insurance premiums will continue to rise and that some high-risk householders and businesses will not be able to obtain cover at all.

The insurance sector insists the state must play its part in protecting communities against future damage, particularly amid warnings about an increase in flooding due to climate change.

"Our main concern is that flood defences are built where they are needed; that the government makes sure that we don't have this development in flood-risk areas in the future," said Horan.

"In the budget they said they would provide €70m for flood defences and humanitarian relief but €70m doesn't get you very far where flood defences are concerned."