Property insurers paid out £1.6 billion in claims during the second quarter of 2025, a 7% increase compared to the previous quarter, as they helped homeowners and businesses recover from unexpected events and costly disruptions, according to the ABI.
The ABI reported that adverse weather drove a significant portion of these claims, with insurers paying out £322 million for damage caused by storms, heavy rainfall, and frozen pipes between April and June. Of that total, £198 million covered damage to homes and possessions, while weather-related business claims amounted to £124 million.
The average property claim stood at £6,200 for households and £17,400 for businesses.
Mark Shepherd, Head of General Insurance Policy at the ABI, said, “Our latest figures emphasise the vital protection insurance continues to offer people and businesses. They also underscore the growing impact of adverse weather on communities across the UK. With climate change making such events more severe and frequent, prevention must become a much greater part of the solution.
“As the Government pushes ahead with plans to build 1.5 million new homes, it’s vital that resilience is baked into both location and design. Homes must be built to withstand water damage, extreme heat, high winds and subsidence – and not built in areas prone to flooding.”
Louise Clark, Manager of General Insurance Policy at the ABI, added, “Flooding and storm damage can be deeply distressing and disruptive. While we can’t control the weather, small preventative steps can go a long way in protecting our homes and reducing the fallout. Clearing gutters, securing roof tiles, fixing any leaks, repairing cracks in doors and windows, and fitting flood gates or airbrick covers where needed, all help limit physical damage when bad weather strikes.
“It’s also important to stay on top of your insurance. Reviewing your policy regularly, checking with your provider if you’re unsure what’s covered, and keeping your home in good repair are essential to ensuring you’re fully protected when the unexpected happens.”
The ABI also noted that in Q2’25, the average annual premium for combined buildings and contents home insurance was £391—£2 lower than Q1’25 but £1 higher than in Q2’24.
The average price of buildings-only insurance fell by £1 from the previous quarter to £321, though this was £4 higher year over year. Meanwhile, contents-only insurance averaged £129, down £2 from Q1’25 and £7 lower than Q2’24.
