The biggest earthquake to hit the UK in 25 years could cost the insurance industry up to £30 million, according to a firm of catastrophe risk analysts.

Risk Management Solutions (RMS) said that initial estimates, which measured 5.2 on the Richter scale, could set insurers back between £15 million and £30 million.

Most of the damage was sustained around Gainsborough.

Dr Andrew Sorby, from RMS, explained that as most UK properties were made of masonry, this made them more liable to severe cracking during an earthquake compared to wood-framed buildings.

He cited the example of last year's earthquake in the Folkestone area where most of the damage was concentrated in a small residential area consisting of mainly Victorian properties.

"The damage caused is largely a reflection of the vulnerability of buildings, rather than the strength of the earthquake.

"Had the same event occurred in an area like California, where earthquake risk is high and properties are built to withstand ground-shaking, the damage would have been minimal."

The quake has highlighted the importance of home insurance, which would protect homeowners from its potentially financially crippling effects.

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