The Association of British Insurers (ABI) has released home insurance figures for the second quarter of the year.
The data saw an 11% rise in home insurance payouts in Q2 with paid claims amounting to £782 million. The total amount of paid claims was equivalent to £8.6 million every single day.
“Home insurance continues to do what it says on the tin – support customers when the worst happens.” said Mervyn Skeet, ABI’s director of general insurance policy.
“Not only being the roof over their heads and the family home, for most people their house is their most valuable asset which, without the protection of home insurance, could be at risk,” he added.
After monitoring and assessing the damages, this increase was partly attributed to the rise in subsidence claims which followed the record-breaking heatwave last summer. Subsidence payouts jumped to 21% which totalled £54 million, a significant increase from the £45 million in Q2 2022.
On average, the value of claims paid amounted to £4,300, which was a 24% jump from the data in the same period in the previous year.
The average premium that was paid for home insurance saw a rise but at a lower rate. ABI’s household insurance premium tracker showed that the average price paid for a combined buildings or contents policy amounted to £329. This was a 10% increase from the £299 in Q2 2022.
“These latest figures show that despite rising claims costs, insurers continue doing all they can to offer competitively priced cover to UK households.” said Skeet.
The organization’s data also revealed that there was more money being paid in claims than received in premiums. Notably, for every £1 that was received in home insurance premiums, £1.22 was being paid in claims and expenses.
ABI admitted that it cannot speculate on future prices and that individual insurers will need to make their own decisions when it comes to prices.
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