Property insurance payouts reached a record £4.6bn over the first nine months of 2025, according to the Association of British Insurers (ABI).
This was £155m higher than the same period last year.
Insurers paid out nearly £1.5bn in the most recent quarter.
Bad weather drove much of the increase, with weather-related damage totalling £936m, £143m more than in 2024.
Claims for damage to homes and possessions from storms and floods reached £596m, up 21% on last year.
The ABI said the figures showed the need for new homes to be built with protection against flooding, extreme heat, high winds and subsidence, and not to be built in flood-prone areas.
Mark Shepherd, head of general insurance policy at the ABI, said: “Building resilience into new homes is essential if we’re to manage the growing risks posed by climate change.
“But resilience isn’t exclusive to new builds. As extreme weather becomes more frequent, existing homeowners also need to know how to protect what they already have.
“That’s why we’ve updated our flooding and storm guidance to provide clear, actionable advice that helps people prepare their homes, understand their insurance, and feel more confident navigating the claims process when bad weather strikes.”
The ABI updated its advice on storms and flooding, giving tips on preparing for bad weather and managing claims.
Guidance covers maintenance like clearing gutters, securing roof tiles, fixing leaks, repairing cracks and fitting flood protection.
The updated flood guide also explains what support insurers give during recovery and how homes can be made more flood-resilient under the Build Back Better scheme.
The average annual price for combined building and contents insurance in the third quarter was £384, down £7 on the previous quarter and £15 less than last year.
Shepherd added: “It’s encouraging, and a relief for households, that premiums have declined for three consecutive quarters.
“To avoid undoing this hard-won progress, it’s vital that Insurance Premium Tax stays at its current level in tomorrow’s Budget, to ease mounting financial pressures for households and businesses doing the responsible thing and protecting their properties.”
