The average cost of home insurance has risen to £396, marking a £21 (six percent) increase from the previous quarter, according to the Association of British Insurers (ABI).
Buildings-only policies averaged £321, up £23 (seven percent), while contents-only cover averaged £137, an increase of £5 (four percent).
Property insurance claims reached a record £1.4 billion in the second quarter of the year, including the highest-ever subsidence payments.
This total represents a five percent increase from the £1.3bn paid out in the first quarter of 2024 and is the highest quarterly amount since the ABI began tracking this data in 2017.
The average payment per home insurance claim also rose by 16 percent, reaching £5,284.
Adverse weather continues to contribute to rising claims, with £144 million paid out for damage from storms, heavy rain, and frozen pipes, marking the fifth consecutive quarter of weather-related claims exceeding £100m.
Subsidence payments, which occur when the ground beneath a property sinks, reached a record £60m in the second quarter.
This reflected a 12 percent increase from £53m in the first quarter of 2024.
Louise Clark, policy adviser at the ABI said: “Home insurance continues to play a vital role in supporting customers when the worst happens.
“Despite rising cost pressures, insurers remain committed to doing everything they can to offer competitively-priced cover and help their customers during a claim.
“Our latest figures demonstrate the devastating impact that adverse weather can have on people and their homes.”
