Insurers in the United Kingdom paid out £6.1 bn in property claims during 2025, including £1.5 bn in the fourth quarter alone, according to the Association of British Insurers. The annual total marks the highest level since 2017.
Weather-related events accounted for £1.2 bn of claims, a 14% increase year on year. Of that figure, £758 mn covered damage to personal belongings and household contents.
Home insurance generated £3.4bn in payouts. The average claim rose by almost £800 to £6,000. More than 560,000 home claims were filed across the year, reflecting repeated bouts of flooding and storm damage.
The latest premium data from the ABI shows:
- The average price of combined building and contents home insurance in Q4 2025 was £379, £14 lower compared to the same period in 2024.
- In the final quarter of 2025, the average cost of buildings-only insurance fell to £312, from £323 in the fourth quarter of 2024.
- The average price of contents-only insurance in the fourth quarter of 2025 was £122, £14 lower compared to the same period in 2024.
Storm-related payouts increased sharply. The average storm claim climbed £750 to £2,450. Flood-related costs jumped 38%, while storm damage to homes increased 32%.
Subsidence added pressure. Payouts rose 10% to £307 mn as prolonged heat contributed to soil shrinkage.
The ABI said 2025 recorded the hottest summer on record in the UK, intensifying ground movement and structural cracking.
Chris Bose, director of general insurance policy at the Association of British Insurers, said severe weather continues to drive losses and requires stronger planning controls. “Once again, we’re seeing the toll that increasingly severe weather is taking on homes and businesses across the UK. A record £6.1 bn in property claims last year shows both the scale of the damage and the vital role insurers play in helping people recover“.
He urged tighter restrictions on development in high-risk flood zones and greater emphasis on resilient home design.
Government action is essential to protect communities from the growing impact of extreme weather. This includes stronger planning rules to stop building in high‑risk flood areas and designing homes with resilience in mind.
Chris Bose, director of general insurance policy at the ABI
Despite elevated claims, pricing softened toward year end. In the fourth quarter, average premiums for combined buildings and contents cover and contents-only policies fell by £14 compared with the prior year. Buildings-only cover declined from £323 to £312.
Windstorm Éowyn added to regional losses. According to Perils AG, the United Kingdom, the Republic of Ireland, and Northern Ireland recorded €765 mn in combined insured losses from the event.
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