The UK household insurance market is poised for premium increases if reinsurance premiums are hiked up following the flood damage in central Europe.

A spokesman for Munich Re said premiums would go up if the damage increased. "We have to adapt premiums to increasing losses," he said.

The estimated insurance bill currently stands at £10bn and a spokesman for Allianz, Europe's biggest insurer, said "second floods" were on their way as the water level continued to rise. He said it was "too early" to estimate the final cost of the damage.

French insurer AXA could also not quantify damages and potential claims, but said it would have to raise premiums if reinsurers changed their criteria.

Loss adjuster GAB Robins' London market director James Peace said: "It is likely that as the flood levels subside, we will be notified of more claims from insurers and reinsurers and will have a better understanding of the extent of the damage."

GAB Robins has already received a number instructions, mostly from commercial businesses.

"We do not expect to receive many personal lines claims as it would appear many properties are not insured.

"We are waiting until homeowners are able to return to their properties," said a spokeswoman.

Allianz's spokesman said flood cover was not automatically included in policies, so many of those affected by the floods might be uninsured. But Allianz could still have to foot a large bill as it took over the business of East Germany's former state insurer Staatliche Versicherung in 1990.

Lloyd's confirmed it would not be affected by flood claims. "We traditionally do not do business in central and eastern Europe," a spokesman said.