Across the board, the average household claim was £6,340. This is the highest on record and is up 20% compared to the same period last year, highlighting just how vital this product is to protect homeowners from unforeseen events.
Extreme weather continues to take its toll as the average home insurance claim for weather-related damage was £6,040. Claims payouts for extreme weather can vary significantly depending on the time of year, and at £6,040 this is the highest first-quarter average on record – up 38% compared to the same period last year when it was £4,390.
The average household subsidence claim was also up year-on-year – rising 9% from £16,295 in 2025 to £17,820 in the first quarter of 2026. Home insurers also paid out £4,350 for the average theft claim this quarter, a 14% increase from last year’s average of £3,800. Home insurance payouts accounted for over half (57%) of all property payouts in this period, with a total of £1.5 billion in claims paid to support households and businesses.
Household property premiums
Premiums fell for a fourth consecutive quarter, with the average combined buildings and contents down another £5 to reach £375. The average combined premium is now 5% (£22) lower than the same period last year when it stood at £396. The average buildings-only premium was £306, a 6% (£19) decrease compared to the same time last year. Contents-only cover averaged £117, 12% (£15) cheaper year-on-year.
Chris Bose, Director of General Insurance Policy at the ABI, said: With nearly £1.5 billion 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.”
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