Record £1.4bn in property insurance claims paid out in the second quarter – ABI

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Andrew Feinberg

White House Correspondent

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.

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.”