Home insurers paid out £846 million in property claims during the first quarter of 2026, according to the latest figures from the Association of British Insurers (ABI). The data offers a timely reminder of the role insurance continues to play in helping households recover when the unexpected happens.
Behind the headline number sits a pattern that will feel familiar to many homeowners. Claims are becoming larger, more complex and more closely linked to changing weather patterns, theft and long‑term property risks.
Record-Breaking Average Home Insurance Claims
Across buildings and contents insurance, the average household claim reached £6,340 in the first three months of the year. That figure is the highest on record and represents a 20% increase compared to the same period in 2025.
For households dealing with water damage, storm impact or subsidence, these rising costs underline just how expensive repairs have become. Labour shortages, higher material costs and wider inflationary pressures continue to push claim values up, even when the incident itself is relatively modest.
Extreme Weather Drives Surge in Claims
Weather‑related damage was a significant factor in this year’s figures. The average weather‑related home insurance claim reached £6,040, up 38% year on year, making it the highest first‑quarter average on record.
These claims include storm damage, flooding and water escapes, such as burst or frozen pipes. While weather has always been a feature of UK insurance claims, the scale and cost of incidents are increasing, placing greater pressure on households and insurers alike.
Subsidence and Theft: Persistent, Expensive Threats
The data also highlights a continued rise in subsidence claims, with the average subsidence payout increasing to £17,820, up 9% on last year.
At the same time, theft claims grew too. The average household theft claim rose to £4,350, a 14% year-on-year increase. While overall crime trends vary regionally, the financial impact of theft remains significant for those affected, particularly where high‑value items or extensive property damage is involved.
Insurance: The Essential Financial Safety Net for Homeowners
In total, home insurance claims accounted for 57% of all property payouts in the first quarter, contributing to £1.5 billion paid out to households and businesses in just three months.
For many policyholders, these payments make the difference between being able to repair and move forward or having to absorb potentially unmanageable costs personally. It’s a clear illustration of why appropriate cover, maintained and reviewed regularly, still matters.
Falling Premiums Mask Growing Homeowner Risks
There was some welcome news for policyholders, too. Average combined buildings and contents premiums fell for a fourth consecutive quarter, down to £375, around 5% lower than a year ago. Buildings‑only and contents‑only premiums also reduced year on year.
However, falling premiums don’t remove the underlying risks. As claim values rise, ensuring cover remains adequate, particularly sums insured and policy limits, becomes increasingly important.
What Homeowners Need to Know Now
These figures reinforce a simple point: the cost of getting insurance wrong has rarely been higher. Underinsurance, outdated valuations or a lack of understanding of exclusions can all create problems when a claim is needed most.
Regular reviews, clear advice and a proper understanding of risk remain essential. Insurance cannot prevent storms, theft or subsidence, but it can provide certainty when they occur.
If you would like advice on your home insurance or want to review your existing cover, contact our team at contact@thomas-carroll.co.uk.
