The tremor, measuring 5.2 on the Richter scale, hit shortly before 1:00 am (0630 IST) with its epicentre in Lincolnshire, but people were woken as far away as Wales, Scotland and Yorkshire.
One person narrowly escaped when a chimney smashed through the roof of his terraced home and crashed into his bedroom in South Yorkshire.
The Association of British Insurers said the cost of damage to homes and property is in excess of £10 million.
Biggest quake since 1984
The tremor is the biggest in Britain since 1984 when north Wales was hit by a quake which was registered at 5.4 on the Richter scale.
People in Newcastle, Yorkshire, Manchester, the Midlands and Norfolk and also parts of Wales, felt the tremor.
Seismologist Dr Brian Baptie said: “This is a significant earthquake for the UK and will have been widely felt across England and Wales.”
A Lincolnshire police spokeswoman said the force had received dozens of calls from residents.
