Context
According to the ABI’s latest data, Insurers have paid out £6.1 billion in property claims in 2025, this is the highest annual total on record. In the final quarter alone, payouts reached £1.5 billion, as adverse weather events continued to drive up claims costs. In 2025 insurers paid out almost £3.4 billion across more than 560,000 home insurance claims. The average claim increased by 15% year-on-year, rising by almost £800 to £6,000.
Key points to note and next actions
The latest premium data from the ABI shows:
- The average price of combined building and contents home insurance in Q4 2025 was £379, £14 lower compared to the same period in 2024.
- In the final quarter of 2025, the average cost of buildings-only insurance fell to £312, from £323 in the fourth quarter of 2024.
- The average price of contents-only insurance in the fourth quarter of 2025 was £122, £14 lower compared to the same period in 2024.