British property insurers paid a record £6.1 billion in property claims last year, according to data from the Association of British Insurers. These increased losses, they report, can be largely attributed to adverse weather events driving up claims costs.

"Once again, we're seeing the toll that increasingly severe weather is taking on homes and businesses across the U.K. A record £6.1 billion in property claims last year shows both the scale of the damage and the vital role insurers play in helping people recover," ABI Director of General Insurance Policy Chris Bose said in a release.

Over the course of 2025, insurers paid £1.2 billion in weather-related property claims, which marks a 14% increase from 2024. Damage to insureds' homes and possessions accounted for approximately £758 million of that amount. The average weather-related claim in 2025 was £2,450 — about £750 higher than the previous year's average.

The ABI reports the cost of domestic flood claims increased by 38% to £312 million in 2025. The average individual flood claim payout increased significantly by 60% to £30,000.

The U.K. also experienced its hottest summer on record in 2025, which increased the risk of ground and soil shrinkage and related claims. As a result, domestic subsidence payouts increased by 10% in 2025 to £307 million — the highest level on record.

Property insurers paid nearly £3.4 billion across more than 560,000 home insurance claims last year, with the average claim rising around 15% to £6,000.

"Government action is essential to protect communities from the growing impact of extreme weather," Bose stated. "This includes stronger planning rules to stop building in high‑risk flood areas and designing homes with resilience in mind."

Despite this increase in property claim payouts, the ABI reports insureds have actually seen small premium decreases. The average cost of combined building and contents insurance in Q4 2025 was about £14 lower than the same period of 2024. The average cost of building-only insurance also dropped by around £11, and content-only coverage decreased by an average of £14 in Q4 2025 from Q4 2024.

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