UK insurers paid out a record £4.6 billion ($9.28 billion) on property claims in the first nine months of the year, the industry peak body says.

The figure is 3% higher than in the same period last year, and if the trend continues this will be the most expensive year on record.

Bad weather continues to drive claims, and the Association of British Insurers says the figures underscore an “urgent need” to embed climate resilience into new housing developments.

“This means designing and constructing homes that can withstand flooding, extreme heat, high winds and subsidence – and, crucially, ensuring they are not built in areas prone to flooding,” it said.

ABI head of general insurance policy Mark Shepherd says resilience is not exclusive to new builds.

“As extreme weather becomes more frequent, existing homeowners also need to know how to protect what they already have,” he said.

“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 average annual premium for combined home and contents cover in the third quarter was £384 ($775) – down £7 on the previous quarter and £15 on the same period in 2024.