Weather damage insurance claims hit record high

18/04/2024

Weather-related damage to homes and businesses saw insurance claims hit a record high in the UK last year following a succession of storms. That is according to data from the Association of British Insurers (ABI), which shows that the value of home insurance claims for weather damage hit an unprecedented £573m in 2023, which was 36% greater than in the previous year. Businesses incurred £443m in weather damage claims, with the average claim paid to both businesses and homeowners rising to £6,235 – an 11% increase compared to 2022. The sharp increases were largely fuelled by storms, including Babet, Ciaran and Debi, which struck last autumn. ABI policy adviser, Louise Clark, 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.” Homeowner’s storm damage claims for high winds and debris totalled £133m last year, but subsequent flooding added £286m, and represented half of all weather-related claims. A further £153m of weather claims came from burst pipes, most of which was incurred in the first three months of 2023 at the tail end of a cold winter. The findings are another reminder of the need for the UK to adapt to the impacts of climate change, according to Clark. “While insurance will continue to protect homeowners and businesses, we can’t afford to lose momentum on our flood defence programme,” she explained. “We continue to press the government for further investment in flood defence and maintenance, as well as calling for changes to the planning system to discourage building where flooding might be more likely.” Image credit: Shutterstock