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Home insurance prices drop – but some postcodes aren’t so lucky

Average prices down 2.8% since the start of 2018

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The average cost of home insurance has fallen by 2.8% since the start of the year, according to a new report from Consumer Intelligence.

The home insurance price index, which tracked premiums for the 12 months to August 2018, revealed that cost of home insurance has started to decline after prices shot up in the wake of the “Beast from the East” earlier this year.

The average price of combined buildings and contents policy now stands at £132 — but this can vary depending on many factors.

Postcode lottery

Location is one of the key factors affecting the cost of home insurance. John Blevins, pricing manager at Consumer Intelligence, said: “Regional pricing is based on claims experience which is influenced by crime rates and localised incidents such as weather events.”

London is the most expensive region for home insurance, where premiums cost over 30% more than the UK average at £173 a year. The average premium in the capital increased by more than twice the rate of inflation, with a rise of 5.2% over 12 months.

The East Midlands also saw prices increase by 2.6% this year, with smaller price rises seen in the South East and West Midlands.

Wales had the largest reduction in premiums over the past 12 months — a decrease of 2.7%.

Homes in the South West enjoy the cheapest premiums overall, with an average annual cost of £117, a drop of 1.5% since this time last year.

Other pricing factors

Older policyholders also tend to see cheaper premiums — and the age/price gap has widened in the past 12 months.

Over-50s now pay an average of £125 for buildings and contents insurance while those under the age of 50 pay almost 10% more at £137.

The index also revealed that older homes are typically more expensive to insure. Properties built between 1850 and 1909 have the highest average premiums at £150, while those built after 1985 cost an average of £121 to cover.

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

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