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This multi-million pound figure is significantly higher than an estimate from one industry insider, who claimed the cost of paying out for vehicles and possessions would be 'more than £2m'.

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Some insurers are giving special consideration to customers who lost their cars who weren't entitled to some of the advantages of full coverage.

Kaidee Horton, head of media at Liverpool Victoria, said: 'Not all of our policies offer car hire but due to the unusual and exceptional circumstances of the fire in Liverpool, we've also arranged hire cars to support those customers who would not ordinarily have been covered.' No-one is thought to have been injured and all animals escaped from the blaze unscathed - but it has also been revealed that four dogs were rescued from a car parked on the top floor of the building.

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The owner praised 'incredible' firefighters for rescuing her pets, and said she had been for a meal with friends and was making her way back to her vehicle when the fire broke out.

She was filmed running down the street to get to her pets after they were rescued by firefighters who found them in a car on the top floor.

They lost their Black Land Rover Discovery Sport bought new at the beginning of November for £52,000.

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