Average flood payout swells by 60% as 2025 home claims surpass £6bn

Insurers paid out a record £6.1bn in property damage claims across 2025, according to new data from the ABI.

The record figures, released today (17 February 2026), came after the fourth quarter of the year recorded £1.5bn in successful claims, largely driven by an extended period of poor weather.

The ABI reported that claims related to weather damage totalled £1.4bn across 2025, up £142m – or 14% – on the previous year.

Storm-related damage also grew, up 32% between years to £244m. The average storm damage payout grew by £750 to £2,450.

One of the greatest increases in compensation levels, however, was seen in domestic flood claims, which swelled by 60% to reach £30,000 on average.

Hot summer weather also cost insurers, with the record heat driving subsidence claims up by 10% to £307m over the period.

The ABI said that the average policy price for combined building and contents insurance stood at £379 in Q4 2025, while buildings only insurance fell slightly to £312 per policy.

Severe weather

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.”