Eye watering loss: what would the Great Fire of London cost today?
A disaster on a similar scale to the Great Fire of London in 1666, which destroyed around a quarter of all the housing stock in the UK capital, would cost a staggering £499 billion if it happened today.
That is the conclusion of analysis from UK home insurer Policy Expert, which based its findings on the average London house price today of £572,949 and the fact that a quarter of London’s homes today constitutes around 870,000 homes.
If the same number of homes were destroyed as then - approximately 13,200 – the bill would be a more manageable £7.5 billion.
The Great Fire was caused by a malfunction of cooking apparatus in Pudding Lane. The report also notes that cooking appliances still cause 50 percent of accidental dwelling fires.
Adam Powell, head of operations at Policy Expert said: “While it is unlikely that we will ever see a fire of the same scale, the message here is to appreciate the devastation that fire can cause. Fire damage is one of the largest causes for insurance claims and many of these are avoidable if you take simple steps.
“While our analysis represents a current value for the buildings destroyed, it still doesn’t even take into account the contents of these homes. The average home will have more than £20,000 worth of contents and it’s often undervalued by the policy holder. People should always think carefully about the value of their contents. If you have any special or expensive items like engagement rings or antiques, inform your insurer to ensure you are adequately covered.”
