Home Insurance Prices Increased 25.7% in Just ONE YEAR
Home Insurance Prices Increased 25.7% in Just ONE YEAR
- The average premium for buildings and contents is £212
- Prices have increased by 10 percent in the last three months
- Households in London face far higher premiums than elsewhere
The average quoted price for home insurance has increased 25.7 percent over the past year, with prices rising nearly 10 percent in the last three months.
According to Consumer Intelligence’s latest price index, average building and contents insurance premiums are now £212.
Households were told to brace for further price increases in the coming months, with listing prices rising 9.9 percent in the three months to September, the highest quarterly increase on record.
The average premium for buildings and contents insurance has risen by 25% to £212
“This is the first time 12-month inflation has broken into double digits, and much of the inflation has happened this year, with quoted premiums up 23.3 percent year-to-date,” says Georgia Day , Senior Insight Analyst at Consumer Intelligence.
“People who have made claims are likely to feel the impact of the crisis even more acutely, as our data shows the highest increases among customers who have made a claim for ‘water escape’, which according to GoCompare is one of the most common claims in the home insurance market is. ‘
Overall, offer premiums have increased by 31.1 percent since Consumer Intelligence began collecting data in February 2014 – which shows how strong the increases were last year.
Over-50s are seeing lower quotes for their home insurance, with average premiums at £199 compared to £222 for those under 50.
Homeowners in London are facing the biggest increases to their policies, with premiums reaching £316 – 49 per cent more than the UK average.
The South East is the only other region where quoted prices are above average at £227.
All regions recorded an annual increase in asking prices of more than 20 per cent, although the North East is the cheapest region with average asking prices of £184.
Older properties continue to offer the highest premiums, with Victorian homes built between 1850 and 1895 averaging £279 for shared contents insurance.
Premiums for houses built between 1940 and 1955 are cheapest at £194, slightly cheaper than the £197 for houses built between 1985 and 2000 and for houses built since 2000 at £198 .
| Region | Price index last year (July 22nd – July 23rd) | Price index last 3 months (April 23 – July 23) | Average premium July 23rd |
|---|---|---|---|
| London | +27.8% | +10.1% | £316 |
| South-East | +28.4% | +11.5% | £227 |
| East | +26.4% | +10.3% | £209 |
| Yorkshire and the Humber | +26.2% | +9.8% | £202 |
| southwest | +24.8% | +10.5% | £195 |
| Scotland | +25% | +9.6% | £194 |
| West Midlands | +22.2% | +9.6% | £194 |
| Wales | +26.5% | +9.2% | £193 |
| East Midlands | +24.4% | +8.7% | £191 |
| northwest | +25.3% | +9% | £190 |
| northeast | +24.3% | +9.7% | £184 |
How to save money on your home contents insurance
Consider a change, not an extension
It might be worth trying a few different comparison sites to cover all the bases, as well as contacting insurers directly.
Reduce your risk – and your premium
Joining a neighborhood protection program, installing better locks, installing a burglar alarm system, or purchasing better smoke detectors can reduce insurance premiums.
Get a no-claims discount
Cheaper is not always better When choosing an insurance policy, it is always best to plan for the worst-case scenario. A small extra charge in premiums will cost far less than a very expensive bill for not having your buildings or contents properly covered.
Read our full guide to saving money on your home insurance here.