Floods are "not as bad as 2002", according to ABI

The ABI has called some reports of the flood crisis "alarmist" and that it was too early to put a figure on the clean-up.

An ABI spokesman said: "It is too early to say whether the clean-up will cost £100m. But we know the Christmas floods are nowhere near as bad, yet, as the flooding in 2000."

The majority of flooding had affected farmland rather than residential areas, he said.

He added that of the two million properties at risk from flooding, 1.8 million were protected under the minimum standard of one flood in 75 years or better.

"This leaves roughly 200,000 properties which need further investigation. We are waiting for the Environment Agency to advise us on its flood defence plans in these areas," he said.

The ABI will continue to lobby the government on its flood defence spending over the coming weeks.

He added: "We must stress that there are no properties that are uninsurable. Some of the reports which state 500,000 homes are without cover are frankly alarmist."