Skip to main content

‘Beast from the East’ drives up home insurance prices

Average buildings and contents policy now costs £133

shutterstock_193252457

Compare home insurance quotes

Find out whether you could be paying less for buildings and contents insurance

Retrieve a quote Get a quote

The average cost of home insurance has risen by 7.6% over the past year, according to a new report from Consumer Intelligence.

The home insurance price index, which tracked premiums for the 12 months to May 2018, revealed that cost of home insurance is increasing at three times the rate of inflation.

Bad weather hits prices

A spell of bad weather earlier this year, known as the ‘Beast from the East’, contributed to the rise in premiums. John Blevins, pricing manager at Consumer Intelligence, said: “All the major insurers have seen a rise in claims from the Beast from the East and extreme weather with the cost of claims feeding through to prices.

“Home insurance rates are, of course, dictated by these weather events, but claims costs and fraud also continue to have a significant impact on pricing.”

Other pricing factors

The average price of combined buildings and contents policy now stands at £133. But this can vary depending on many factors.

Location is a key indicator of price — London is the most expensive region for home insurance, where premiums cost almost 30% more than the UK average at £172 a year. The average premium in the capital increased by 11.9% over 12 months. The south west is the cheapest region overall, with average premiums of £117.

Older policyholders also tend to see cheaper premiums — partly down to the fact younger homeowners are more likely to have extra bathrooms which can increase the risk of costly water damage claims. Over-50s pay an average of £130 while those under the age of 50 pay slightly more at £134.

The index also revealed that older homes are typically more expensive to insure. Properties built between 1850 and 1895 have the highest average premiums at £160, while those built after 2000 cost an average of £117 to cover. Blevins said: “Pre-1910 properties are prone to developing faults and, given the more robust materials used in the era, repairs prove costly.”

Could you save money by switching home insurance provider? Find out by comparing buildings and contents quotes below:

Compare home insurance quotes

Find out whether you could be paying less for buildings and contents insurance

Retrieve a quote Get a quote

Categories