Members paid out £4.6 billion in property insurance claims in the first nine months of 2025, the highest year-to-date total on record, according to the ABI.
The figure is £155 million higher than the same period in 2024, with almost £1.5 billion paid in the most recent quarter alone. If current trends continue, total payouts for the year could surpass all previous annual records.
Weather-related losses drives claims
Adverse weather remains a major driver of rising claims. Weather-related losses reached £936 million, up £143 million year-on-year and accounting for just over one-fifth of all property claims so far. Losses to homes and personal possessions rose 21% to £596 million, reflecting the growing impact of storms, flooding and other climate-linked events.
The ABI said the data highlights the need for stronger climate resilience in new and existing housing. This includes designing homes to better withstand flooding, heat, wind and subsidence, and avoiding development in high-risk flood zones.
Mark Shepherd (pictured), head of general insurance policy at the ABI, said the shift in weather patterns makes it essential for households to understand both risk and resilience measures. The association has updated its guidance on storms and flooding, offering practical steps for preparing properties and navigating claims.
The advice outlined basic maintenance expectations, such as clearing gutters, fixing leaks, repairing structural cracks and installing flood protection devices. These moves will help support both safety and insurance validity, the ABI said.
Meanwhile, the updated flood guide detailed the support insurers provide throughout the recovery process. It further explained how homeowners can access resilience-focused repairs through the Build Back Better scheme, which helps properties better withstand future flooding.
Easing home insurance premiums
Despite the rise in claims, home insurance premiums have continued to ease. The average cost of combined buildings and contents cover fell £384 in Q3 2025, £7 lower than the previous quarter and £15 below the same period last year.
Shepherd said the continued decline in premiums is positive for households but noted that stability depends on policy decisions.
He also stressed the importance of maintaining Insurance Premium Tax as its current level in the Budget to avoid adding cost pressures for homeowners and businesses.
"It's encouraging, and a relief for households, that premiums have declined for three consecutive quarters," Shepherd said. "To avoid undoing this hard-won progress, it's vital that Insurance Premium Tax stays at its current level in tomorrow's Budget."
On Wednesday, Chancellor Rachel Reeves released her second Budget, which unveiled a range of tax and spending measures that are expected to impact insurers, brokers and their clients.
