Record £6.1bn paid out in property claims in 2025 amid extreme weather

Insurers paid out a record £6.1 billion in property claims in 2025, as adverse weather events continued to drive up claim costs, according to an industry body.

The Association of British Insurers (ABI), which released the figures, said the annual total is the highest since its data started in 2017.

Across the year, insurers paid out £1.2 billion in weather‑related property claims – a 14% (£142 million) increase compared with 2024.

Of this, claims for weather damage to people’s homes and possessions accounted for £758 million.

Damage to people’s homes as a result of storms reached £244 million in 2025, a 32% (£59 million) increase from the previous year.

The average storm damage payout in 2025 reached £2,450 – £750 more than in 2024.

The average flood payout to homeowners surged by 60%, reaching £30,000.

Extreme weather is also having an impact on subsidence claims, the ABI said.

Domestic subsidence payouts increased to reach £307 million, up 10% or £27 million annually and the highest level on the ABI’s records.

The ABI said its latest figures also show that the average price paid for combined building and contents home insurance in the fourth quarter of 2025 was £379 – £14 lower compared with 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.”