Only one of the twin World Trade Center towers was insured because experts believed the chances of both collapsing simultaneously was too far-fetched, it emerged today.
The towers' owners, the Port Authority of New York, will only receive an insurance payout of about £1 billion, far below the £3.3 billion value put on the towers before Tuesday's attack, it was reported.
A spokesman for the US Insurance Information Institute told the Guardiannewspaper: "The possibility of the loss of both structures was seen as so remote that cover was not taken out on those lines".
Insurance analysts yesterday said the terrorist attack on the US would be the most expensive manmade disaster ever and could cost the industry up to £27 billion.
Lloyd's of London would not comment on the extent of its exposure as it was still assessing the impact.
But analysts said the group would be hit hard as its aviation syndicates insure more than a third of the world's aircraft.
Many Lloyd's "names" - wealthy individuals who make up a significant proportion of the Lloyd's market - have unlimited liability that could bankrupt them if claims spiral.
Lloyd's chairman Mr Saxon Riley said: "The situation in New York and Washington is evolving continually. The global social and economic effects are just starting to be felt.
"Any calculation of the total losses so soon after the event can only be deeply flawed".
PA