The Association of British Insurers (ABI) estimated the claims figure following the 1,000-degree Centigrade blaze that took hold of the Liverpool Echo Arena's auto park during the final event of the four-day Liverpool International Horse Show.
"Clearly, insurers will need proof that a customer's auto was actually in the vehicle park, but this must not become a cold, bureaucratic response".
The Echo Arena was forced to cancel the last performance of the Liverpool International Horse Show and hundreds of people were left stranded overnight.
The fire was accidental but questions have been raised over whether a sprinkler system would have extinguished, or at least slowed-down the impact of the fire.
According to Liverpool's mayor Joe Anderson, a Land Rover on the third level of the auto park caught fire, which subsequently spread to the other vehicles in the building, all of which got destroyed completely according to Merseyside Police.
The mayor of Liverpool, Joe Anderson, blamed the extensive damage on recent budget cuts to the fire service, saying that if more locally based engines had been able to attend the fire more quickly, the structure may have been saved.
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Last year, there were 1.3 million devotees. "Now, we are expecting an increase of five per cent also", she said. It will cover a 500-metre radius from the procession route, the Quirino Grandstand and Quiapo Church.
Nina Barbour, president of Liverpool Horse Show, said: "I would like to express my enormous thanks and gratitude to the emergency services, the Echo Arena staff, riders, grooms and support staff, the general public and the City of Liverpool following Sunday night's events".
Witnesses said cars seemed to explode every couple of seconds when the fire was at its peak. However, the ABI said it was highly unusual to have so many vehicles destroyed at the same time at a single location. "We would also like to thank the people who kindly provided transport for customers to enable them to travel home, as well as Liverpool City Council for establishing a relief centre for those needing shelter".
"The flames were just shooting out of the engine and coming past the tyres", she said to the BBC. Despite the damage, an arena spokesperson confirmed all people and horses are safe and that "there were no injuries during this bad incident".
"If you see smoke from the Liverpool Echo Arena vehicle park fire then stay indoors, close all your windows and doors and if you have difficulty breathing seek medical assistance".
Merseyside Fire and Rescue Service/PA Temperates reached 1,000C during the blaze. "I saw one vehicle on fire but it was clear it was ferocious and spreading".