The cost of flood damage and suspension of economic activity in waterlogged parts of the UK has reached £630 million, but it could go a lot higher, accountants PwC warned today.

Record rainfall in December and January and rivers at tides never seen before caused devastation to many homes and businesses in rural parts of the UK.

In February, flood water from the Thames caused more damage to property in London’s commuter belt.

PwC said it was raising its estimate of the cost to insurers to a total of £500 million, while the cost to the economy was £630 million in December and January alone.

"Given the weather forecasts for this week and further into February, we would expect further flash flooding and for these estimated costs to rise,” said Mohammad Khan, insurance partner at PwC.

Dom Del Re, insurance catastrophe expert at PwC, said costs to insurers could be pushed up by claims for disruption to business as well as damage to property.

He said: “In past flood events, such as the summer 2007 floods, business claims made up around 25% of the total claims. Claims arising from business interruption could be a significant driver of the overall insured loss.”