The cost of fire damage in the UK rose by 16% last year to a record £1.3bn, according to new figures from the Association of British Insurers.
Commercial fire damage cost £865m, up 15% on the previous year. School fires alone cost £33m, with a serious school fire occurring, on average, every month. Fire damage to homes cost £408m, up 17% on the previous year.
There has been a particular increase in what are termed large loss fires (those over £500,000) and the ABI says it is researching the causes of this increase. While it says that both fraudulent arson and arson generally are factors, it is nor ruling out other factors such as modern materials used in construction.
"These are alarming figures," said Nick Starling, the ABI's director of general insurance and health. "They highlight both the importance of fire insurance, and reducing and managing the fire risk."
He linked the record figures with the economic downturn which started last year, and warned that businesses and homeowners are being hit by an increasing fire threat. "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. We believe that arson and fraud are contributing factors. We are investigating this worrying trend and will be publishing our recommendations for tackling the problem later this year."
Commercial fire damage cost £865m, up 15% on the previous year. School fires alone cost £33m, with a serious school fire occurring, on average, every month. Fire damage to homes cost £408m, up 17% on the previous year.
There has been a particular increase in what are termed large loss fires (those over £500,000) and the ABI says it is researching the causes of this increase. While it says that both fraudulent arson and arson generally are factors, it is nor ruling out other factors such as modern materials used in construction.
"These are alarming figures," said Nick Starling, the ABI's director of general insurance and health. "They highlight both the importance of fire insurance, and reducing and managing the fire risk."
He linked the record figures with the economic downturn which started last year, and warned that businesses and homeowners are being hit by an increasing fire threat. "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. We believe that arson and fraud are contributing factors. We are investigating this worrying trend and will be publishing our recommendations for tackling the problem later this year."
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