The floods, the country's worst for 60 years, led to almost 60,000 claims for damage in both the north and south of England, said the Association of British Insurers.

It had previously forecast costs of more than two billion pounds, although analysts had already said it was more likely to be nearer three.

The most recent flooding, centred on the southwestern country of Gloucestershire, was likely to account for about half that amount, said the association.

This year could be one of the worst on record for weather-related claims, it added.

Four people were killed in the June floods which affected north and central England, while three died in the south, all in Tewkesbury, where the waters reached the feet of the town's ancient abbey.

Meanwhile, residents in 140,000 homes which had their water supplies cut by the floods were told Tuesday they can drink from taps again.

The water had been restored but was undrinkable because a treatment plant was shut down due to the floods.

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