Adverse weather pushes property insurance payouts to £6.1 billion in 2025

Insurers paid out £6.1 billion in property claims in 2025, according to the ABI's latest data - the highest annual total on record¹. In the final quarter alone, payouts reached £1.5 billion, as adverse weather events continued to drive up claims costs.

Across the year, insurers paid out £1.2 billion in weather-related property claims - a 14% (£142 million) increase on 2024². Of this, claims for weather damage to people's homes and possessions accounted for £758 million³.

Damage to people's homes as a result of a storm reached £244 million in 2025, a 32% (£59 million) increase from the previous year ⁴. The average storm damage payout in 2025 reached £2,450. This is £750 more than 2024. The cost of domestic flood claims rose by 38% (to £312 million), and the average flood payout to a homeowner also rose significantly by 60%, reaching £30,000.

Whilst storms and flooding played a significant part in increased payouts, the wider effects of extreme weather also extended into subsidence. The Met Office reported summer 2025 as the UK's hottest on record, creating conditions that can increase the risk of ground and soil shrinkage which saw d omestic subsidence payouts rise to £307 million, up 10% (£27 million) year on year and reaching their highest level on record.

In 2025 insurers paid out almost £3.4 billion across more than 560,000 home insurance claims. The average claim increased by 15% year-on-year, rising by almost £800 to £6,000.

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.

Chris Bose, Director of General Insurance Policy at the ABI, said:

"Once again, we're seeing the toll that increasingly severe weather is taking on homes and businesses across the UK. A record £6.1 billion in property claims last year shows both the scale of the damage and the vital role insurers play in helping people recover.

"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."

ENDS

Notes to editors

The ABI's 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.

For more information, please contact [email protected]

Footnotes

1. This is an annual high since the ABI started collecting the data in 2017.

1. Adverse weather-related claims of this amount were spread across domestic, commercial and business interruption lines.

1. These weather-related figures cover damage caused by burst or frozen pipes, escape of water, as well as damage as a result from storms and flooding.

1. The ABI's updated flooding and storms advice helps 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.

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.

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