More than 60,000 homes sustained serious damage in the recent floods - and with average bills from last month's floods reaching £40,000, the total repair bill is fast approaching £3bn.

Although these figures from the Association of British Insurance (ABI) look grim, they must be seen in context.

About 20 million households pay more than £6bn in premiums for buildings and contents each year, paying an average £210 for buildings cover and £147 for contents cover.

Total pay-outs by home insurers last year were less than £2bn, so the leading firms have plenty in the kitty.

Although forecasters say more serious weather problems could lie ahead, Norwich Union's call to raise premiums by ten per cent received little support from rivals.

Adrian Webb, of esure, said: "Since the last floods of 2000, home insurers have had a goodish run. They look to spread reserves from good times to bad, so there need be no kneejerk reaction to increase premiums.

"But you will see a gradual trend upwards in prices, particularly in worst-hit areas."

While 93 per cent of home- owners hold buildings cover, only 75 per cent bother to insure home contents.

That is why the events of recent weeks have been a huge wake-up call to many people.

Jon Sellors, of Royal & Sun Alliance, said: "The severity of the damage will prompt people to look closely at their cover, or possibly even to buy it for the first time."

At Cornhill Direct, spokesman Mark Bishop said: "The floods underline the fact that consumers should reflect on what level of service they want, in the event of a claim, instead of simply what they pay.

"There are reports of very good responses to the current emergency, and other responses not entirely to policyholders' satisfaction. The simple fact is that all insurance companies are not the same."

Nor are policies. Debra Williams, managing director of Confused.com, said: "Even those who have escaped the worst of the floods are being hit by indirect consequences like power failure.

"More than 50,000 people have had their electricity cut off, and they could face significant losses for which they may be unable to claim, such as the cost of replacing spoilt food from defrosted freezers."

Home insurance still leaves many customers dissatisfied. Research by Abbey Home Insurance indicates that 257,000 home insurance claims are rejected each year.

Andrew Perryman, of www.best dealinsurance.co.uk, said there were two main problems with home insurance.

"Firstly, many people simply do not bother to insure their homes. No machinery exists to check, even though it is widely assumed buildings insurance is compulsory," he said.

"The second problem in home insurance is that people buy cheap policies on a non-advised basis, believing they are fully protected.

"It happens so easily. They go online, see a cheap policy that appears to cover everything and buy it, believing that they are fully protected, and happy to have saved a few pounds on their insurance.

"However, a bulk standard policy may buy only the bare basics. Hidden in the small print may be all sorts of weird and wonderful exclusions."

Mr Perryman advised that anyone looking to renew or buy home insurance should read the key features of the policy document carefully - or use an experienced broker to find the best deals.