Home / Environment / UK Homes Face Soaring Claims Amid Extreme Weather
UK Homes Face Soaring Claims Amid Extreme Weather
19 Feb
Summary
- UK insurers paid a record £6.1 billion in property claims last year.
- Flood claims rose 38%, with average payouts jumping 60% to £30,000.
- Insurers urge stronger rules against building in high-risk flood zones.
In 2025, the UK experienced a record £6.1 billion in property insurance payouts, driven by adverse weather conditions including a prolonged dry summer and dismal rainfall. This figure represents the highest annual rate of claims ever recorded by the Association of British Insurers (ABI).
Claims related to storms and flooding saw substantial increases. Storm damage payouts grew by 32%, reaching £244 million. Domestic flood claims escalated by 38%, totaling £313 million. The average flood payout to homeowners rose significantly by 60% year-on-year to £30,000.
Subsidence claims also reached a record high of £307 million in 2025, a 10% increase from the previous year, partly attributed to the hot summer shrinking soil. The ABI highlighted that more than 6.3 million homes in England are potentially at risk of flooding.
In light of these escalating costs and risks, the ABI is advocating for stronger government intervention. Key recommendations include implementing stricter planning regulations to halt development in flood-prone areas and encouraging the construction of more resilient homes to better withstand extreme weather events.
