Insurers pay out more

According to data from USwitch, in Q2 of 2025, UK insurers paid out £1.6bn in property-related claims.

This is 7% higher than the value of payouts in Q1, indicating that an increasing number of households are falling back on their home insurance policy.

Extreme weather takes its toll

In 2024, weather-related damage accounted for a record £585m of home insurance claims.

This highlights the impact of global warming, with conditions such as storms and subsidence becoming an increasing issue for households.

Premiums fall

Many people believe that home insurance is not affordable for them; however, data has found that the cost of premiums fell across the UK over the last year.

The largest annual decrease was seen in the North East (-10.5%), while the South West saw the smallest fall (-2.0%).

Many homes underinsured

Despite the falling cost of home insurance premiums, 76% of households could be underinsured.

They risk being insufficiently covered if they need to make a home insurance claim due to unforeseen damage or losses.