The riots so far could cost the insurance industry up to £500m, industry sources predicted.
Estimates for some of the claims costs so far include:
• £10m - The burnt down Carpetright store in Tottenham
• £20 – £25m – The Sony warehouse razed to the ground in Enfield
• £10m – The family furniture store in Croydon
The three losses are a fraction of some of the claims set to come flooding into the insurers’ claims departments which will centre around property damage and business interruption.
Sources told Insurance Times that the damage is likely to cost anywhere between £200 and £300m, but could reach £500m in a worst case scenario.
However, that figure could easily be topped if the riots continue throughout the summer.
Meanwhile, a spokesman for the ABI said the damage was likely to cost in the ‘tens of millions’.
"It is too early for us to have an accurate picture of total costs, especially business interruption costs, but insurers are working hard to deal with claims coming in which will give a sense of the level and cost of damage," Nick Starling, ABI director of general insurance and health, said in a statement.
