Between January and April this year, claims for weather-related damage to people’s homes and possessions topped £200 million for the first time ever. Payouts surpassed the previous quarterly record from Q1 2022 by £67 million.
The latest figures have prompted renewed calls from the ABI for the Government to commit to adequate, long-term investment in flood defences within its upcoming Spending Review and publication of the 10 Year Infrastructure Strategy.
These record payouts follow significant and consistent bad weather, including Storm Eowyn – which the Met Office described as the UK’s most powerful windstorm for over a decade.
The latest claims data from the ABI also reveals that in the first three months of 2025:
- Claims for damage to homes from adverse weather totalled £226 million, £80 million (55%) more than the weather-related claims payouts in the previous quarter.
- A record £886 million was paid out in total for domestic property claims, up £145 million (20%) on Q1 2024. This includes damage for other perils such as fire, theft and subsidence.
- Bad weather wasn’t just a problem for homeowners, as ABI members paid out £109 million to businesses for weather-related damage and business interruption. This is an increase of £7 million (7%) on Q1 2024.
- The total cost of property claims for domestic and commercial buildings in Q1 2025 was £1.5 billion, up £170 million (13%) on Q1 2024.
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With bad weather continuing to take a toll on homeowners and businesses, the ABI has stressed the importance of adequate annual investment in flood defences.
Louise Clark, Manager of General Insurance Policy at the ABI, said:
“Insurance remains a critical safety net when disaster strikes. But with climate change driving more frequent and severe weather, there must be a greater focus on prevention measures. Adequate and sustained investment in flood defences is crucial, and we urge the Government to commit to an investment of at least £1 billion a year as part of its upcoming Spending Review.
“We also want to see swift action to combat surface water flooding, and a clear strategy to build climate-resilient homes in safe, flood-free areas as part of the Planning and Infrastructure Bill. Such forward-thinking measures will not only deliver substantial financial savings in the long-term but also mitigate the emotional strain that extreme weather events inflict on households.”
The annual average price of combined building and contents home insurance in Q1 2025 was £393. Despite this being £1 lower than the previous quarter, it is £24 (7%) more compared to Q1 2024 as high claim costs continue to have an impact.
The average price of buildings-only insurance was also down £1 on the previous quarter to £322. However, it is £28 (10%) higher compared to Q1 2024
The average price of contents-only insurance in Q1 2025 dropped £8 (6%) to £128 compared to Q4 2024. It is also £2 lower than prices paid in Q1 2024.
[Main image: houses on the banks of the River Avon at flood levels. Credit: PJ photography / shutterstock.com]