The quarterly total marks a 7% rise compared to the £1.5 billion paid out in Q1 2025, as insurers helped their customers to recover from unwanted events such as fire and theft.
Adverse weather continues to drive a significant portion of claims. Between April and June, insurers paid out £322 million for damage caused by storms, heavy rainfall and frozen pipes. Of this, £198 million covered damage to people’s homes and possessions - while weather-related business claims totalled £124 million.
The average property claim came in at £6,200 for households and £17,400 for businesses - demonstrating the significant financial support insurance offers.
Mark Shepherd, Head of General Insurance Policy at the ABI, said: “Our latest figures emphasise the vital protection insurance continues to offer people and businesses. 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. As the Government pushes ahead with plans to build 1.5 million new homes, it’s vital that resilience is baked into both location and design. Homes must be built to withstand water damage, extreme heat, high winds and subsidence - and not built in areas prone to flooding.”
Louise Clark, Manager of General Insurance Policy at the ABI, added: “Flooding and storm damage can be deeply distressing and disruptive. 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. It’s also important to stay on top of your insurance. Reviewing your policy regularly, checking with your provider if you’re unsure what’s covered, and keeping your home in good repair are essential to ensuring you’re fully protected when the unexpected happens.”
Property insurance premiums
The annual average price of combined building and contents home insurance in Q2 2025 was £391, £2 lower than the previous quarter, but £1 more compared to the same period in 2024.
The average price of buildings-only insurance was also down £1 on the previous quarter to £321, but £4 higher compared to the same period in 2024.
The average price of contents-only insurance in Q2 2025 dropped £2 to £129 compared to the previous quarter and was £7 lower than the average price paid in Q2 2024.
Footnotes
The ABI’s Property Insurance Premium Tracker is the most comprehensive in the UK, analysing 15.5 million policies sold a year. It’s also the only collection that is based on the price customers pay for their cover rather than what they are quoted (which typically delivers higher averages). More on this in our blog.
The ABI’s Q2 2025 property claims data collection has improved market coverage compared to 2024. As a result, comparisons with previous periods should be treated carefully. Comparisons year on year of relative metrics such as average cost of claim and claims frequency should still be representative, but comparisons for absolute metrics such as total claims settled should be used with care.
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