Data from the Association of British Insurers shows that the cost of the average household claim in Q1 2025 was £6,340. This is up by 20% on the same period last year and is the highest on record. Despite this, premiums fell for the fourth consecutive quarter with the average price for combined buildings and contents cover now sitting at £375. This is 5% lower than the same period last year.

In addition to the total household claims payments of £846m, insurers also paid property claims to businesses of approximately £650m, taking the total for property payouts to almost £1.5bn in Q1.

Chris Bose, director of general insurance policy at the ABI, said: “With nearly £1.5bn paid out to customers in just three short months, there’s no doubt property insurance remains a vital financial safety net for households and businesses.

“With record Q1 average payouts for extreme weather events, we continue to see the impact of adverse weather on people’s homes. Stronger action from government is still needed to ensure new homes aren’t built in high-flood risk areas and that properties are designed to withstand climate risks. Getting this right will protect homes and business owners and support thriving communities.”