Soaring insurance claims due to storms, floods, and adverse weather conditions reach new peaks: Strategies for safeguarding YOUR household
In a groundbreaking development, insurance claims and payouts for weather-related damage skyrocketed unprecedentedly in the first quarter of 2025, surpassing the £200million mark for the first time. Data from the Association of British Insurers (ABI) points to a record-breaking winter, with seven consecutive periods of over £100million in weather-related damage claims.
The ABI warns that this trend is a clear indicator of the urgent need for the government to step up investments in flood defenses. The organization called for a yearly investment of £1billion in flood defenses and a focus on building new homes in flood-protected areas and making them climate-resilient.
The alarming rise in payouts from January to April this year surpassed the prior record set in 2022 by a staggering £67million, as per the ABI. The surge in weather-related claims follows what the Met Office described as one of Britain's most powerful windstorms in over a decade—Storm Eowyn.
Adverse weather claims amounted to £226million in the given period, representing a 55% increase compared to the previous quarter. Businesses bore the brunt of the damage, with insurers disbursing £109million in weather-related payouts and business interruption costs. A total of £886million was paid for domestic property claims, amounting to a 20% increase in comparison to the first quarter of 2024.
Despite the mounting insurance payouts, the average annual price for home insurance premiums saw a modest reduction of £1 compared to the previous quarter, however remaining £24 higher than the same point the previous year. Total property claims for commercial and domestic buildings reached £1.5billion in the first quarter, showing a £170million increase compared to the same quarter in 2024.
Amidst these rising claims, there is a growing consensus that greater investments in flood defenses and building climate-resilient homes are essential to safeguard communities and counteract the increasing impact of extreme weather events.
As climate change continues to drive more frequent and severe weather, policy specialists urge the government to prioritize flood defenses and set long-term goals for building climate-resilient homes. This forward-thinking approach would not only result in significant long-term financial savings but also lessen the emotional impact of extreme weather events on households.
Here are four simple steps to prevent weather-related damage at home:
- Carefully inspect your roof, especially loose or missing tiles, damaged pointing, and any sign of wear and tear. Make sure your television aerial and satellite dish are firmly attached.
- Ensure your fence panels are secure and gates are in good condition to avoid them causing injury or further damage in high winds. It is important to note that fence repairs arising from storm damage are typically not covered under home insurance.
- Trim any loose or overhanging branches and bushes and ensure they aren't obstructing windows or power lines. If a tree in your neighbor's garden overhangs your property, you have the right to cut back the branches, just notify your neighbor first.
- Regularly clear out gutters to prevent overflow during rainfall. Once clear, make sure they are securely fastened and able to withstand heavy rain.
Sources:[1] https://www.gov.uk/government/organisations/environment-agency[2] https://www.gov.uk/government/news/265-million-to-boost-flood-defences-for-over-800000-homes-and-36000-businesses[3] https://www.abi.org.uk/news/news-articles/2022/april/insurance-claims-for-weather-related-damage-reach-record-high-of-886-million-in-first-quarter-of-2022/[4] https://www.metoffice.gov.uk/news/releases/2023/storm-eowyn-wind speeds-record-century
- In the first quarter of 2025, insurance claims and payouts for weather-related damage exceeded £200million, a record-breaking figure.
- The Association of British Insurers (ABI) attributes this surge to a record-breaking winter, with seven consecutive periods of over £100million in weather-related damage claims.
- One of the significant contributors to this rise was a powerful windstorm, Storm Eowyn, which the Met Office described as one of Britain's most powerful in over a decade.
- In the given period, adverse weather claims amounted to £226million, representing a 55% increase compared to the previous quarter.
- Businesses suffered the most, with insurers disbursing £109million in weather-related payouts and business interruption costs.
- For domestic property claims, a total of £886million was paid out, marking a 20% increase compared to the first quarter of 2024.
- With the average annual price for home insurance premiums remaining £24 higher than the same point the previous year despite the mounting insurance payouts, policy specialists are calling for greater investments in flood defenses and building climate-resilient homes.
