Record £1.4bn in property insurance claims paid out in the second quarter – ABI
Subsidence payments for home insurance claims increased in the second quarter of the year, hitting a record £60 million, the ABI said.
Your support helps us to tell the story
From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.
The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.
Your support makes all the difference.A record £1.4 billion in property insurance claims was paid out in the second quarter of this year, with subsidence payments also reaching their highest recorded levels, the Association of British Insurers (ABI) said.
The payments helped homeowners and businesses cope with unexpected and unwanted events such as fire and flooding.
The total is the highest quarterly amount since the ABI started collecting the data in 2017 and a 5% increase on the first quarter of 2024 when payouts reached £1.3 billion.
Our latest figures demonstrate the devastating impact that adverse weather can have on people and their homes
The average payment per home insurance claim also increased, rising by 16% compared with the previous quarter to £5,284.
Adverse weather continues to play a significant role in the amount insurers pay out in home insurance claims, the ABI said.
Claims for damage to homes from storms, heavy rain and frozen pipes reached £144 million in the second quarter of this year. It was the fifth quarter in a row that weather-related claims were above £100 million.
Subsidence payments for home insurance claims were also up in the second quarter of the year, hitting £60 million – the highest quarterly figure on record and up 12% on the £53 million paid in the first quarter of 2024.
The average price of home insurance rose to £396, up £21 (6%) on the previous quarter, the ABI said.
The average buildings-only policy was £321, an increase of £23 (7%) from the previous quarter. For contents-only cover, the average price paid was £137 – £5 (4%) higher than the first quarter of 2024.
Louise Clark, policy adviser at the ABI said: “Home insurance continues to play a vital role in supporting customers when the worst happens.
“Despite rising cost pressures, insurers remain committed to doing everything they can to offer competitively-priced cover and help their customers during a claim.
“Our latest figures demonstrate the devastating impact that adverse weather can have on people and their homes.”