Insurers paid out £6.1bn in property claims in 2025 – the highest annual total on record – according to the latest data from the ABI. In the final quarter alone, payouts reached £1.5bn, as adverse weather events continued to drive up claims costs.

Across the year, insurers paid out £1.2bn in weather related property claims – a 14% (£142m) increase on 2024. Of this, claims for weather damage to people’s homes and possessions accounted for £758m.

Damage to people’s homes as a result of a storm reached £244m in 2025, a 32% increase from the previous year. The average storm damage payout in 2025 reached £2,450 – a £750 increase on 2024. The cost of domestic flood claims rose by 38% (to £312m), and the average flood payout to a homeowner also rose significantly by 60%, reaching £30,000.

Whilst storms and flooding played a significant part in increased payouts, the wider effects of extreme weather also extended into subsidence. The Met Office reported summer 2025 as the UK’s hottest on record, creating conditions that can increase the risk of ground and soil shrinkage which saw domestic subsidence payouts rise to £307m, up 10% (£27m) year-on-year and reaching their highest level on record.

Chris Bose, director of general insurance policy at the ABI, said: “Once again, we’re seeing the toll that increasingly severe weather is taking on homes and businesses across the UK. A record £6.1bn in property claims last year shows both the scale of the damage and the vital role insurers play in helping people recover.

“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.”