Insurers paid out more than £200 million for weather-related home insurance claims between January and April 2025, the highest quarterly figure on record, according to the Association of British Insurers (ABI). The total surpassed the previous record set in the first quarter of 2022 by £67 million.
The ABI linked the increase to a period of sustained severe weather, including Storm Eowyn, which the Met Office described as the most powerful windstorm to affect the UK in more than a decade. The trade body has called on the Government to prioritise long-term investment in flood mitigation as part of the upcoming spending review and 10 Year Infrastructure Strategy.
In the first quarter of 2025, insurers paid £226 million for weather-related damage to homes, up £80 million, or 55%, on the previous quarter. Total payouts for domestic property insurance, including claims for risks such as fire, theft and subsidence, reached £886 million, a rise of £145 million or 20% compared to the same period in 2024.
Meanwhile, claims from businesses for weather-related property damage and business interruption came to £109 million, an increase of £7 million year-on-year. Across domestic and commercial property lines, insurers paid out £1.5 billion in total during the quarter, up £170 million on the previous year.
The average annual premium for combined buildings and contents insurance stood at £393 in the first quarter of 2025, £1 lower than the previous quarter but £24 higher than the same period in 2024. The ABI attributed the year-on-year increase to higher claims costs.
The average buildings-only premium was £322, down £1 from the previous quarter but up £28 compared to Q1 2024. Contents-only insurance averaged £128, a decrease of £8 from the final quarter of 2024 and £2 lower than the same period the previous year.
Louise Clark (pictured), manager of general insurance policy at the ABI, said the claims figures demonstrate the importance of preventative measures.
“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,” she said.
Clark also called for swift action on surface water flooding, as well as a clear strategy for building climate-resilient homes 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,” she added.
Meanwhile, Dean Standing, chief revenue officer at data consultancy Sagacity, said insurers are increasingly focused on how extreme weather affects exposure and resilience. He emphasised the role of data in supporting more targeted risk management.
“The UK has been battered by large scale storms which damaged thousands of homes, cars and other property – proving a nightmare for insurers. As extreme weather worsens, claims are going to rise, putting more pressure on insurers and their risk levels. Those who cannot modernise their risk strategies are setting themselves up for potential failure in an increasingly volatile climate,” he said.
“Building precise customer profiles using real-time data is essential for effective risk management,” he added. “Factors like location, property types, and infrastructure all play a role in better understanding customers’ individual risks – they must be taken into account to price policies responsibly. Regardless of whether you attribute the rising damage caused by the weather to climate change or lacking infrastructure, one thing is clear: insurers must be better prepared for the surge in claims caused by damaging weather.”
