Insurers pay record £6.1bn in claims amid surge in weather damage

Insurers paid out an unprecedented £6.1 billion in property claims last year as severe weather continued to push up the cost of damage, an industry body has said.

The Association of British Insurers (ABI) reported that the total was the highest recorded since it began collecting the data in 2017.

Weather-related property claims reached £1.2 billion, marking a 14 per cent (£142 million) increase on the previous year. Of that figure, £758 million was paid out for damage to homes and personal belongings caused by extreme weather.

Storm damage to homes alone amounted to £244 million in 2025, up 32 per cent (£59 million) year on year. The average storm-related claim rose to £2,450, which is £750 higher than in 2024.

Flooding also drove up costs, with the typical payout to homeowners jumping 60 per cent to £30,000. 

The ABI added that extreme conditions were contributing to a rise in subsidence claims, with domestic subsidence payouts climbing 10 per cent (£27 million) to £307 million, the highest level since its records began.

Despite the surge in claims, the average combined buildings and contents insurance premium in the final quarter of 2025 stood at £379, £14 lower than during the same period a year earlier.

Chris Bose, the ABI’s director of general insurance policy, said the latest figures highlighted the growing impact of severe weather on households and businesses across the UK. He said the record £6.1 billion in claims underlined both the extent of the damage and the crucial role insurers play in helping customers recover.

This article is for general information and interest purposes only and is not intended to provide legal advice, nor does it necessarily represent the views of HCB.