Severe storms from last year have underscored the growing challenge faced by UK home insurers due to climate change. Here’s a more detailed breakdown of the surge in weather damage claims for UK home insurers:
1. Record Claims Amount:
- Last year, weather-related home insurance claims in the UK reached a record £573 million.
- This amount represents a 36% increase compared to the previous year’s claims of £421 million.
2. Drivers of the Surge:
- The surge was primarily driven by a series of storms and heavy rain, resulting in damage to properties.
- Notable storms like Babet, Ciaran, and Debi contributed to this rise in claims.
3. Types of Damage:
- The total includes both flood damage and burst pipes caused by freezing temperatures.
- Burst pipes alone accounted for £153 million, mainly occurring at the beginning of 2023 during a cold winter period.
4. Average Payouts:
- The average payout for weather-related claims in 2023 was approximately £5,000, compared to just over £3,000 in 2022.
5. Historical Context:
- While the data only goes back to 2017, it’s worth noting that previous weather damage claims may have rivaled the 2023 record.
- Events like the winter floods of 2015-16 and the summer floods of 2007 might have contributed significantly.
6. 2024 Outlook:
- Unfortunately, the trend appears unlikely to reverse in 2024, as wet weather and a succession of winter storms continue.
- For instance, Storm Henk alone triggered almost £150 million in claims during the first week of January 2024.
7. Insurers’ Commitment:
- Despite these challenges, insurers remain committed to supporting affected homeowners.
- Emphasizing the importance of flood defense programs.
8. Other Insurance Claims:
- High temperatures have also led to other insurance claims.
- The summer heatwave in 2022 reportedly contributed to a 45% rise in subsidence cases that year.
9. Overall Property Payouts:
- Property payouts across homeowners and businesses reached £4.9 billion in 2023.
- Residential claims accounted for just over half of this amount.
10. Premiums and Cost Trends:
- Although premiums rose in 2023, when adjusted for inflation, the average cost of combined buildings and contents cover for homes has actually fallen by 13% since 2017.
