Record £1.4bn in property claims paid out in Q2 2024

Insurers paid out £1.4bn in claims for property damage during Q2 2024, according to data from the ABI.

The latest figure is 5% higher than what was recorded in the first quarter of the year and, in turn, marks the largest quarterly sum since the ABI began collecting data in 2017.

The average payout per home insurance claim was also up, rising 16% on the previous quarter to £5,284. 

The increases came as a result of adverse weather, with claims for damage to homes from storms, heavy rain and frozen pipes reaching £144m last quarter.

Subsidence payouts for home insurance claims were also up in the second quarter of the year, hitting £60m.

This was the highest quarterly figure on record and up 12% on the £53m paid in Q1 2024.  

“Our latest figures demonstrate the devastating impact that adverse weather can have on people and their homes,” Louise Clark, policy adviser at the ABI, said.

”That’s why it’s important that the government takes the opportunity to reform the planning system, to focus on prevention and resilience measures to help reduce our nation’s vulnerability to the effects of climate change.”

Premiums

The ABI also revealed that the average price of home insurance rose to £396, up £21 (6%) on the previous quarter.

The average buildings only policy was £321, an increase of £23 (7%), while the average price paid for contents-only cover was £137 – £5 (4%) higher than Q1 2024. 

Clark said: “Home insurance continues to play a vital role in supporting customers when the worst happens.

“Despite rising cost pressures, insurers remain committed to doing everything they can to offer competitively priced cover and help their customers during a claim.”