How rising temperatures are affecting Property Insurance

Posted by Lee Partner, Head of Private Clients & Commercial, Kerry London Ltd

In recent years, extreme heat has stopped being an anomaly in UK weather patterns and is increasingly becoming the norm not only in spring and summer but also in UK risk management. 

Record-breaking highs in May, June and July 2026 heatwaves have reinforced what the industry has reported over the past several years: heat is now a fundamental driver of property claims, underwriting scrutiny, and pricing. 

At Kerry London, we are increasingly advising clients on how sustained heat is impacting both physical assets and insurance performance. 

From weather event to insurance exposure?

Recently, heatwaves have become increasingly frequent and intense, occurring much earlier in the year and extending right through into September. This shift in how the UK weather is perceived, with these extreme summers, means businesses can no longer treat heat as an exceptional risk. It is now creating ongoing stress on buildings, infrastructure, and operations, directly impacting property insurance. 

Why commercial property is vulnerable

Because these trends have worsened over the past 25 years, the majority of the UK has not been built to withstand prolonged high temperatures. 

Many commercial buildings that retain heat rather than dissipate it struggle with cooling and ventilation and place increased strain on mechanical systems (including air conditioning). 

It is increasingly worse in dense urban environments, where temperatures can be up to 12 degrees higher. This is clearly a risk that insurers are increasingly aware of and focused on.  

For property portfolios, this is becoming an underwriting consideration as much as a facilities issue. 

What this means for claims

Extreme heat is never an isolated issue; it amplifies existing risks, often with even greater detrimental impacts. 

Hot, dry conditions increase the spread of fires, with much more frequent outdoor and site-based fire incidents. 

Prolonged periods of heat dry and shrink soil, driving ground movement and a rise in subsidence claims. This is an area where insurers are tightening terms and increasing excesses. 

Thermal expansion, roofing degradation, and HVAC failures are increasingly common under sustained heat conditions. 

There is also mass operational disruption, with buildings overheating and transport failures, all adding to the losses these adverse conditions are creating. 

Heat is not creating entirely new risks; it is intensifying the ones that property insurance already responds to. 

How is the insurance market responding?

Insurers have quickly started reacting to these increased risks and impacts. We are seeing increased scrutiny of building design, condition, and location, as well as public pressure to impose property standards regulations. There is a greater-than-ever focus on risk management and mitigation systems. Premiums are repeatedly rising, due to higher climate exposure, as well as higher excesses, particularly in regard to subsidence. 

The traditional relevance and reliability of historical data are becoming much less due to constant year-on-year changes. This is being reflected drastically in how risk assessment is conducted and in the increasing complexity of pricing.

What businesses should be doing now

From an insurance perspective, risk management needs to become more proactive rather than the traditional reactive approach.  

Businesses should focus on key areas such as improving cooling and ventilation systems; monitoring the condition of roofing, wiring, and critical systems under stress; controlling and avoiding fire risks and ignition sources; and preparing for periods of reduced capacity or disruption to day-to-day office operations. 

These measures are not just risk management; they are factors which influence the insurability and cost of cover for your properties. 

A structural shift in property risk

Extreme risk is no longer a seasonal issue, it has become a strategic issue for property, operations and insurance programmes.  

For businesses, the challenge is no longer managing the anomalous days of extreme heat, but preparing and managing the cumulative impact of sustained heatwaves on assets and performance.

How Kerry London supports clients

At Kerry London, we work closely with clients to ensure their property insurance programmes reflect this evolving risk landscape. 

We are doing this by: 

• Identifying exposure created by climate and heat stress 

• Reviewing policy terms for potential gaps or restrictions 

• Supporting risk improvements that align with insurer expectations 

As the market continues to adjust, businesses that take a proactive, informed approach will be best positioned to maintain both adequate cover and cost control. 

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Kerry London is authorised and regulated by the Financial Conduct Authority. The company is a leading UK independent and Lloyd’s registered broker, which means that we work with a wide range of niche and major insurers.

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