In the UK, weather-related home insurance claims surged by over a third in 2023, hitting a record £573 million, according to industry data.
This figure represents a £150 million increase from the previous year, driven by severe storms such as Babet, Ciaran, and Debi, the Association of British Insurers (ABI) reported. These storms, along with flooding and burst pipes from freezing temperatures early in the year, significantly raised repair costs.
The average insurance payout for weather-related damage was nearly £5,000 in 2023, up from just over £3,000 in 2022.
Although ABI data only dates back to 2017, historical comparisons suggest that past weather damage claims could have been comparable to 2023’s record, especially during the winter floods of 2015-16 and the summer floods of 2007.
Average payouts for weather damage rose to nearly £5,000 amid a surge in claims.The trend of increasing weather-related claims is expected to continue in 2024, with ongoing wet conditions and winter storms. For example, Storm Henk alone triggered around £150 million in claims in early January. This January was noted as the wettest in 250 years, though a mild winter and the warmest February on record may have reduced burst pipe claims.
ABI’s Louise Clark highlighted the growing frequency of extreme weather events, linking them to climate change. She emphasized the need for continued investment in flood defenses despite record insurance payouts following a challenging autumn and winter.
High temperatures also affected insurance claims, with 2022’s heatwave contributing to a 45% rise in subsidence cases. Overall, total property insurance payouts in 2023 amounted to £4.9 billion, with residential claims accounting for over half. Despite rising premiums, the average cost of home insurance has decreased by 13% since 2017 when adjusted for inflation.