UK Home Insurance Statistics 2026

UK home insurance premiums and claims data shifted materially through 2025 and into early 2026, driven by record adverse-weather losses, rising subsidence payouts, and the lagged effect of FCA pricing reforms. Figures are drawn from the ABI Property Insurance Premium Tracker, the Environment Agency National Flood Risk Assessment 2024, and the FCA General Insurance Value Measures dataset. Updated June 2026.

Headline figures for 2026

Q1 2026 produced the highest average household claim on record at £6,340 (ABI, May 2026), even as premiums continued a downward trend that began in mid-2025. Home insurance claims totalled £846 million in Q1 2026 and the average weather-damage claim reached £6,040, up 38% year-on-year (ABI, May 2026).

Premiums: buildings, contents and combined

Premiums climbed through 2023 and 2024 before declining across the second half of 2025 and into 2026. The combined average peaked at £403 in Q4 2024 (ABI, February 2025) before falling for four successive quarters to £375 in Q1 2026 (ABI, May 2026). The 2022 average of £300 (ABI, February 2023) reflected FCA pricing-practice rules effective 1 January 2022, eliminating the practice of charging renewing customers more than equivalent new customers.

Claims: total payouts and average values

Home insurance claims totalled £3.4 billion in 2025 across more than 560,000 individual claims at an average of £6,000 per claim, a 15% increase year-on-year (ABI, February 2026). Total property claims including commercial lines reached a record £6.1 billion (ABI, February 2026). Claims acceptance rates varied widely in 2024: from below 55% to above 95% across different firms (FCA General Insurance Value Measures, 2024).

Weather and flood claims

Insurers paid £758 million for weather-related damage to homes and possessions in 2025, up 14% on 2024's then-record of £585 million (ABI, February 2026). Domestic flood claims rose 38% to £312 million, the average flood payout reached £30,000 (up 60%), and storm damage to homes totalled £244 million (up 32%) with the average storm payout at £2,450 (ABI, February 2026). The Environment Agency's January 2025 assessment identifies 6.3 million properties in England at flood risk from rivers, the sea or surface water (Environment Agency NaFRA, January 2025).

Subsidence claims

Domestic subsidence payouts reached a record £307 million in 2025, up 10% year-on-year (ABI, February 2026). In H1 2025, nearly 9,000 households received support totalling £153 million at an average of £17,264 per claim (ABI, July 2025). By Q1 2026 the average subsidence claim had risen to £17,820, a 9% increase (ABI, May 2026). The 2022 heatwave produced a comparable spike: 18,000 claims at an expected cost of £219 million (ABI, March 2023).

Trends over time

FCA pricing reforms compressed new-vs-renewal differentials from January 2022, pushing the combined average to a record low of £300 (ABI, February 2023). Subsequent claims inflation from weather and subsidence drove a rebound to £395 in full-year 2024 (ABI, February 2025) before easing. Total property claims grew from £2.5 billion in 2022 to £6.1 billion in 2025, with weather driving above-trend growth in each period (ABI, February 2026).

Regional breakdown

The ABI Premium Tracker does not disaggregate by region. The Environment Agency NaFRA (January 2025) provides the most granular public breakdown of flood risk: London carries the highest surface-water risk (319,800 properties at high risk, 7.4% of the region) while the East Midlands, South East and Yorkshire and Humber face the largest river and coastal concentrations.

Data covers England only. Scotland, Wales and Northern Ireland publish separate flood risk assessments.

Frequently asked questions

What is the average home insurance premium in the UK in 2026?

The average combined buildings and contents premium in Q1 2026 was £375 per year (ABI Premium Tracker, May 2026). Buildings-only cover averaged £306 and contents-only £117 in the same period (ABI, May 2026). The Q1 2026 level is down from a peak of £403 in Q4 2024 (ABI, February 2025).

How much do home insurers pay out each year in claims?

Home insurance claims totalled £3.4 billion in 2025 across more than 560,000 claims (ABI, February 2026). The total property market paid out a record £6.1 billion when commercial lines are included (ABI, February 2026).

How many properties in England are at risk of flooding?

The Environment Agency NaFRA (January 2025) identifies 6.3 million properties at risk of flooding from rivers, the sea or surface water. Climate projections indicate up to 8 million properties could be at risk by mid-century (Environment Agency NaFRA, January 2025).

Why has the cost of flood claims risen so sharply?

The average flood payout rose 60% to £30,000 per homeowner in 2025 (ABI, February 2026). Total domestic flood claims reached £312 million in 2025, up 38% on 2024 (ABI, February 2026), driven by more intense rainfall events and higher reinstatement costs.

What is driving the rise in subsidence insurance claims?

Subsidence payouts hit a record £307 million in 2025, up 10% year-on-year (ABI, February 2026). Prolonged summer heat dries clay-rich soils causing ground shrinkage. The average subsidence claim in Q1 2026 was £17,820 (ABI, May 2026).

Did the FCA pricing reforms reduce home insurance premiums?

FCA rules effective from January 2022 required insurers to price renewals no higher than equivalent new business. The combined average fell to £300 in 2022 (ABI, February 2023). Premiums subsequently rebounded as claims inflation fed through, reaching £395 in full-year 2024 (ABI, February 2025).