‘Our latest data serves as a blunt reminder of the devastating damage that adverse weather can cause to people’s homes and businesses’
Insurers forked out £585m for weather-related damage to homes and possessions in 2024, setting a new record since the Association of British Insurers (ABI) began tracking these figures in 2017.
The final quarter alone saw claims for home damage due to adverse weather hit £146m, marking the seventh consecutive quarter where weather-related claims exceeded £100m. This surge in claims has nudged premiums upwards, with the annual average cost of combined building and contents home insurance in 2024 jumping by £55 (16%) from the previous year, reaching £395.
In the fourth quarter of 2024, the average price for a combined household buildings and contents policy was £403 – down £4 (1%) from the third quarter but up £39 (11%) from the same period in 2023. Mark Shepherd, head of general insurance policy at the ABI, commented: “Our latest data serves as a blunt reminder of the devastating damage that adverse weather can cause to people’s homes and businesses.
“Insurers are braced for these sorts of events at any time – but prevention is always better than cure. That’s why we continue to advocate for climate resilience measures to be carefully considered in all planning decisions and building standards, to ensure properties are fit for the future and that they are not built in areas prone to climate risk.
“We’ve also long stressed the need for Government to further invest in flood defence and maintenance, and to take swift action on mitigating surface water flooding.”
Insurers paid up £102m to businesses for weather-related damage and business interruptions during the last three months of the year. The Association of British Insurers (ABI) cited EY stats that revealed in 2023, for every £1 property insurers took in home insurance premiums, they shelled out £1.18 in claims.
The ABI added that EY is bracing for additional losses come 2024.