ABI members paid out a record £4.6 billion in property insurance
claims during the first nine months of the year, helping
thousands of homeowners and businesses to recover from unwanted
and unexpected events.1
Claims payouts for the year so far are £155 million (3%) higher
compared to the same period last year, with the latest quarter
seeing insurers paying out almost £1.5 billion. If the trend
continues, insurers could be on track to pay out more in 2025
than any year on record.
Breaking down the nine-month figures, adverse weather continues
to heavily impact claims. Damage caused by bad weather totalled
£936 million, £143 million more than the same period in 2024 and
just over a fifth (21%) of the total £4.6 billion paid out in
claims.2
Of the weather-related total, damage to people's homes and
possessions reached £596 million, up 21% on the previous
year.
The figures underscore the urgent need to embed climate
resilience into new housing developments. This means designing
and constructing homes that can withstand flooding, extreme heat,
high winds, and subsidence – and, crucially, ensuring they are
not built in areas prone to flooding.
Mark Shepherd, Head of General Insurance Policy at the
ABI, said: “Building resilience into new homes is
essential if we're to manage the growing risks posed by climate
change. But resilience isn't exclusive to new builds. As extreme
weather becomes more frequent, existing homeowners also need to
know how to protect what they already have. That's why we've
updated our flooding and storm guidance to provide clear,
actionable advice that helps people prepare their homes,
understand their insurance, and feel more confident navigating
the claims process when bad weather strikes.”
The ABI has updated its storms and flooding advice to help
households prepare for extreme weather. Its storms advice and
FAQs shares tips on
preparing for adverse weather and how to manage a claim
effectively. It also outlines simple maintenance measures that
keep home insurance cover valid and can significantly reduce the
risk of damage when severe weather hits. These include clearing
gutters, securing roof tiles, fixing leaks, repairing cracks, and
installing flood protection devices.
The updated flood guide sets out
the support insurers provide at every stage of the recovery
process and explains how homes can be made more flood‑resilient
during repairs through the Build Back Better scheme.
Property insurance
premiums
The annual average price of combined building and contents home
insurance in Q3 2025 was £384, £7 lower than the previous
quarter, and £15 less compared to the same period in
2024.
Mark Shepherd continued: “It's encouraging,
and a relief for households, that premiums have declined for
three consecutive quarters. To avoid undoing this hard-won
progress, it's vital that Insurance Premium Tax stays at its
current level in tomorrow's Budget, to ease mounting financial
pressures for households and businesses doing the responsible
thing and protecting their properties.”
ENDS
Footnotes
- The ABI's Property Insurance Premium Tracker is the most
comprehensive in the UK, analysing 15.5 million policies sold a
year. It's also the only collection that is based on the price
customers pay for their cover rather than what they are quoted
(which typically delivers higher averages). More on this
in our blog.
- Adverse weather-related claims of this amount were spread
across both business and domestic lines.
