Cost of fire damage rises to £3.4m every day

Mar 6 2009 by John Cranage, Birmingham Post

Homeowners and companies battling through the recession are being hit by an increasing fire threat, according to the Association of British Insurers.

The cost of fire damage in 2008 rose by 16 per cent on 2007 to a record £1.3 billion – £3.4 million every day.

The ABI’s figures show that in 2008 the cost of commercial fire damage rose by 15 per cent to £865 million. School fires alone cost £33 million, while fire damage to homes cost £408 million, up 17 per cent on the previous year.

“These are alarming figures. They highlight both the importance of fire insurance, and reducing and managing the fire risk,” said Nick Starling of the ABI.

“We know that arson tends to increase during an economic downturn. Insurers are reporting a rise in large-scale fires that are increasingly putting lives at risk.”