04/03/2009 - Fire damage linked to arson rise
The Association of British Insurers (ABI) has warned that the number of arson attacks may be on the rise because of the economic downturn.
According to the insurance trade body, the cost of fire damage rose by 16% to a new high during 2008, suggesting that the number of arson attacks increased.
Insurance companies have also reported a jump in the number of claims for large-scale fires that cause damage costing more than £500,000 to rectify.
The cost of fire damage to the insurance industry during 2008 soared to a record £1.3 billion - the equivalent of £3.4 million every day.
Fire damage to homes cost £408 million during the year, 17% more than in 2007, while the cost of damage to commercial premises rose by 15% to £865 million.
The ABI said the increase in fire damage costs is because of a higher number of large-scale fires, rather than an increase in the overall number of fires.
Nick Starling, the ABI's director of general insurance and health, said: "These are alarming figures. They highlight both the importance of fire insurance, and reducing and managing the fire risk."
Copyright © Press Association 2009
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