Claims payouts for the year so far are £155 million (3%) higher compared to the same period last year, with the latest quarter seeing insurers paying out almost £1.5bn. If the trend continues, insurers could be on track to pay out more in 2025 than any year on record.

Breaking down the nine-month figures, adverse weather continues to heavily impact claims. Damage caused by bad weather totalled £936m, £143m more than the same period in 2024 and just over a fifth (21%) of the total £4.6bn paid out in claims.

Of the weather-related total, damage to people’s homes and possessions reached £596m, up 21% on the previous year.

The figures underscore the urgent need to embed climate resilience into new housing developments. This means designing and constructing homes that can withstand flooding, extreme heat, high winds, and subsidence – and, crucially, ensuring they are not built in areas prone to flooding.

Mark Shepherd

Mark Shepherd, head of general insurance policy at the ABI, said: “Building resilience into new homes is essential if we’re to manage the growing risks posed by climate change. But resilience isn’t exclusive to new builds.

“As extreme weather becomes more frequent, existing homeowners also need to know how to protect what they already have. That’s why we’ve updated our flooding and storm guidance to provide clear, actionable advice that helps people prepare their homes, understand their insurance, and feel more confident navigating the claims process when bad weather strikes.”

The ABI has updated its storms and flooding advice to help households prepare for extreme weather. Its storms advice and FAQs share tips on preparing for adverse weather and how to manage a claim effectively. It also outlines simple maintenance measures that keep home insurance cover valid and can significantly reduce the risk of damage when severe weather hits. These include clearing gutters, securing roof tiles, fixing leaks, repairing cracks, and installing flood protection devices.

The updated flood guide sets out the support insurers provide at every stage of the recovery process and explains how homes can be made more flood‑resilient during repairs through the Build Back Better scheme.

The annual average price of combined building and contents home insurance in Q3 2025 was £384, £7 lower than the previous quarter, and £15 less compared to the same period in 2024.

Mr Shepherd continued: “It’s encouraging, and a relief for households, that premiums have declined for three consecutive quarters.

“To avoid undoing this hard-won progress, it’s vital that Insurance Premium Tax stays at its current level in tomorrow’s budget, to ease mounting financial pressures for households and businesses doing the responsible thing and protecting their properties.”