The United Kingdom has experienced a new record number of home insurance claims after several extreme storms, a worrying development for homeowners and the insurance industry. New data from the Association of British Insurers (ABI) reveals that property insurance claims due to the weather totalled a record £226 million in Q1 2025, the highest quarterly total since records began in 2017.
This extraordinary value reveals the increasing cost of extreme weather for households and insurers. Claims are at a record level, driven by a number of severe storms that brought widespread flooding, damage to homes and loss of possessions to many parts of the UK early in the year. This spike in claims is £67 million higher than the previous quarterly high achieved in 2022.
Meanwhile, in a worrying trend, the latest data also shows property insurance claims have been above the £100 million mark for seven consecutive quarters. These extended trends also indicate that the UK no longer has the luxury of considering extreme weather phenomena as rare events, but as a continual and expensive challenge.
How Will Homeowners and Insurers Be Affected
The burden for homeowners is a double whammy. Many are not only dealing with the anxiety and chaos of having to repair or replace damaged property, but are also facing soaring insurance premiums. An Aid to Business Intelligence (ABI) report states that the average home insurance price UK saw a seven per cent rise year-on-year during the first quarter of 2025, taking the average cost to £393.
Reason for Hike in Premiums If insurers have to pay out more and higher-value claims, correlating, of course, to the increased number and severity of extreme weather events and the realistically increasing cost of covered assets, then premiums rise. As the cost of damages climb, insurers must respond to pressure to retrofit their pricing models to remain solvent and keep pace.
A Call for Government Action
Louise Clark, policy adviser at the ABI, said the results showed it was time for action. Clark said the record damages in the opening months of 2021 demonstrated the need for “smart spending on flood defences and climate adaptation”. With the government spending review looming next month, she argued: “This is the moment to ensure funding for flood protection and our infrastructure comes to the top of the in-tray.
Clark and other industry leaders contend that the government should be investing in measures to prevent the worst effects of the next storm, like better drainage systems, stronger coastal defences, and flood-resistant building designs. Such sustained approaches might alleviate some of the insurance burden on property owners and insurers.
Home Insurance in a Year of Climate Change and Beyond
Broadly, this trend is connected to climate change: storm-related damage claims are rising. Rising temperatures are causing storms to be more powerful and frequent, leading to increased destruction across the UK. Once again, exposure to the disastrous effects of weather climate have been briefed, fought for and widely understood — and meteorologists and climate experts have continued to caution that the UK should expect more unstable and unprecedented weather in future years to come.
Consequently, the insurance industry is being obliged to change. Insurers are examining new risk approaches, investing in data science and reevaluating their coverage in flood-prone regions. Another effort being promoted more and more frequently involve ensuring that flood insurance remains accessible and affordable for high-risk homes via public-private partnerships.
A Wake-Up Call
The new high for insured losses from weather events over just three months should be a wake-up call to policymakers and insurers and the public.’ Having insurance will help you recover after a storm, but it wont stop the damages from happening. The full-scope initiative, encompassing climate adaptation, urban planning, and public education, will be critical to ensuring communities are prepared for the next round of weather-related calamity.
With the UK facing perhaps more storms in next decades, all parties must come together to protect homes and communities, and critical infrastructure from next storm.
