Britain’s extreme weather in 2025 triggered a sharp increase in home insurance claims for flooding, storm damage, and subsidence, pushing total property payouts to a record £6.1 billion.
Weather-Related Payouts Climb
Insurers disbursed £1.2 billion on weather-related property claims last year, a 14% rise or £142 million more than 2024. This included £758 million for damage to properties and possessions. Storm damage alone accounted for £244 million, up 32% or £59 million from the prior year.
Flood claims escalated by 38% to £313 million, with the average payout to homeowners surging 60% to £30,000. In the final quarter of 2025, total insurer payouts reached £1.5 billion amid ongoing adverse weather, while the average storm damage claim hit £2,450—£750 higher than in 2024.
Subsidence Claims Reach New Peak
Subsidence payouts climbed 10% to £307 million, the highest ever recorded. Hot, dry conditions during Britain’s record hottest summer increased soil shrinkage risks, contributing to the rise.
Overall, insurers handled more than 560,000 home insurance claims totaling £3.4 billion, with average claims increasing 15% year-on-year.
Government Urged to Act on Flood Risks
Officials from the Environment Agency and Department for Environment, Food and Rural Affairs report over 6.3 million homes in England face flood risks.
Chris Bose, director of general insurance policy at the Association of British Insurers (ABI), stated: “Once again, we’re seeing the toll that increasingly severe weather is taking on homes and businesses across the UK. 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.”
He added: “Government action is essential to protect communities from the growing impact of extreme weather. This includes stronger planning rules to stop building in high-risk flood areas and designing homes with resilience in mind.”
Insurance Premiums Dip Slightly
The average cost of combined buildings and contents home insurance fell to £379 in the fourth quarter of 2025, down £14 from 2024. Buildings-only policies averaged £312 (down from £323), and contents-only averaged £122 (also down £14).
Tips for High-Risk Properties
Homeowners in flood-prone or subsidence-vulnerable areas often face higher premiums and fewer options. Start with price comparison sites to check coverage. If needed, consult brokers via the British Insurance Brokers’ Association website or specialists like Homeprotect, Intelligent Insurance, and InsureMy.
For flood risks, Flood Re offers a tool listing suitable insurers and brokers. Paying annually may secure discounts, but prioritize comprehensive coverage over the cheapest quote. Know your home’s rebuild cost, contents value, and claim history before comparing policies on sites like MoneySupermarket, Confused.com, or Uswitch.
