Record insurance payouts for home weather damage
HOME insurance claims for weatherrelated damage soared a third in just a year to hit a record £573million in 2023, industry chiefs have revealed.
The jump was largely due to a run of storms, such as Babet, Ciaran and Debi, and included a £286million bill because of flooding.
A £133million tab followed high winds with a further £153million for burst pipes, most of which happened in the first three months of 2023 at the tail-end of a cold winter.
The average weather-related payout for home insurance last year was approaching £5,000, at £4,916, according to the Association of British Insurers.
This was a leap compared with 2022, when the figure was £3,077 of the total £421million in domestic weather claims.
It was not just a problem for homeowners – with businesses putting in £443million of claims in 2023. The average weather-related payout for them was £18,542, up from £12,612 in 2022.
The ABI said that property insurers had typically paid out around £13million per day last year to help homeowners and businesses cope with events including flooding and theft.
The industry stumped up £4.86billion for homeowners and businesses in all. More than half of this figure – £2.55billion – was for home insurance claims. The ABI said this total was up from £2.33billion in 2022 and was driven by weather-related damage, which it has kept records on since 2017.
In its analysis, it said the total number of claims remained fairly level but the average paid out to businesses and homeowners rose to £6,235, an 11% increase compared with 2022. Louise Clark, policy adviser at the ABI, said: “Extreme weather events may not feel so rare as they used to as we grapple with a changing climate.
“Insurers continue to be there for affected homeowners, with payouts hitting record levels after a particularly difficult autumn and winter with seemingly countless storms, from Agnes onwards, leading to significant flooding.
“While insurance will continue to protect homeowners and businesses, we can’t afford to lose momentum on our flood defence programme.”
The ABI said that, when adjusted for inflation, the average cost of a home insurance claim has risen by 16% since 2017, while average premiums have fallen by 13% over the same period, when looking at combined buildings and contents cover.