Context
According to the latest Property Insurance Tracker from the ABI, the average home and business insurance payout reached a record £10,000 for claims across July, August and September 2026.
Key points to note and next actions
- The number of claims fell, but payouts rose: Home and business claims dropped 4% to 142,000, while payouts increased 1% to £1.5 billion, driven by higher repair costs and more severe weather damage.
- Major claim costs remained high: Average domestic claims reached £38,000 for fire, a record £20,000 for subsidence and £28,000 for flooding.
- Subsidence claims hit a record: Insurers received 13,000 new domestic claims between July and September 2026, up from 8,000 in the same period in 2025, following prolonged hot, dry weather.
- Warning signs: Homeowners should seek advice about sudden or diagonal cracks, particularly those wider than 3mm or wider at the top.
- Premiums were broadly stable: Average annual home insurance cost £329 in Q3 2026, unchanged year on year but £4 higher than Q2. Combined cover averaged £389, while buildings-only and contents-only premiums fell year on year to £310 and £118 respectively.