UK weather-related insurance claims reach record £573m

A holiday park in Northampton in January following Storm Henk. Photograph: Dan Kitwood/Getty

Storms and heavy rain pushed up weather-related home insurance claims in the UK by more than a third last year to a record £573m, according to industry data.

The repair bill for storm damage and other extreme weather during 2023 was £150m more than in 2022, the Association of British Insurers said, contributing to an overall 10% rise in residential property claims settled last year.

The increase was fuelled by a succession of storms including Babet, Ciaran and Debi, according to the ABI. The weather total includes flood damage as well as burst pipes in freezing temperatures, which accounted for £153m, mainly at the beginning of 2023 at the tail end of a cold winter.

The average weather-related payout was approaching £5,000 in 2023 compared with a little over £3,000 in 2022.

The ABI data only goes back to 2017, and in real terms, taking inflation into account, British weather damage claims in the past may have rivalled the 2023 record, especially during the winter floods of 2015-16, and the summer floods of 2007

Nonetheless, the weather trend appears unlikely to have reversed in 2024, with continuing wet weather and a succession of winter storms. Storm Henk triggered almost £150m in claims in the first week of January alone, according to PwC estimates. This January was the wettest on record for 250 years, although a mild winter, including the warmest-ever February, may have reduced burst pipe claims.

Louise Clark, policy adviser at the ABI, said: “Extreme weather events may not feel so rare as they used to as we grapple with a changing climate.

“Insurers continue to be there for affected homeowners, with payouts hitting record levels after a particularly difficult autumn and winter, with seemingly countless storms, from Agnes onwards, leading to significant flooding. While insurance will continue to protect homeowners and businesses, we can’t afford to lose momentum on our flood defence programme.”

High temperatures have also prompted other insurance claims, with 2022’s summer heatwave reportedly contributing to a 45% rise in subsidence cases that year.

The ABI said total property payouts across homeowners and businesses reached £4.9bn in 2023, just over half for residential claims, or around £13m a day on average.

While the total number of claims remained fairly level, the average claim paid to businesses and homeowners rose to £6,235, an 11% increase compared with 2022.

Despite rising premiums in 2023, the ABI said that, adjusted for inflation, the average cost of combined buildings and contents cover for a home has fallen by 13% since 2017.