Insurers paid £1.6bn in property claims in Q2 2025

UK insurers paid £1.6bn in property claims during the second quarter of 2025 to help homeowners and businesses recover from damage and disruption, according to new data from the ABI.

The figure marked a 7% increase on the £1.5bn paid out in Q1 2025, with fire, theft and adverse weather among the primary drivers of loss between April and June.

Regarding weather, £322m was paid out for storm, rainfall and frozen pipe-related damage during the quarter. Of this, £198m was related to damage to homes and possessions, while business claims accounted for £124m.

The average household property claim stood at £6,200, with business claims averaging £17,400, the ABI revealed.

Mark Shepherd, head of general insurance policy at the ABI, said the data highlighted both the financial protection insurance offers and the growing need to strengthen resilience.

“Our latest figures emphasise the vital protection insurance continues to offer people and businesses,” Shepherd said.

“They also underscore the growing impact of adverse weather on communities across the UK. With climate change making such events more severe and frequent, prevention must become a much greater part of the solution.”

Louise Clark, manager of general insurance policy at the ABI, added that although extreme weather cannot be avoided, simple steps can help reduce exposure to damage.

“Flooding and storm damage can be deeply distressing and disruptive,” she said. “While we can’t control the weather, small preventative steps can go a long way in protecting our homes and reducing the fallout.

”Clearing gutters, securing roof tiles, fixing any leaks, repairing cracks in doors and windows and fitting flood gates or airbrick covers where needed, all help limit physical damage when bad weather strikes.”

Premium trends

The ABI’s data also showed that average property insurance premiums remained broadly stable in Q2 2025.

The average price of combined building and contents cover was £391 – £2 lower than Q1 2025, but £1 higher than in Q2 2024.

The average premium for buildings-only insurance stood at £321, down £1 on the previous quarter, but up £4 year-on-year. Contents-only insurance averaged £129 in Q2 2025, a £2 decrease on the prior quarter and £7 less than the same period last year.

The ABI noted that its Property Insurance Premium Tracker, which analyses 15.5 million policies sold each year, reflects the actual price paid by customers, rather than quotes.