Skip to main content

Home insurance prices are creeping up

Average buildings and contents policy now costs £137

shutterstock_499385251

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 rose by 1.2% in the three months leading to October, according to a new report from Consumer Intelligence.

The latest Home Insurance Price Index revealed that cost of home insurance has started to creep back up after prices fell slightly earlier this year. However, despite the recent increase, average prices are 0.4% lower than this time last year.

The average price of combined buildings and contents policy now stands at £137 — but this can vary depending on many factors.

Crime rates impacting prices

Location is one of the key factors affecting the cost of home insurance.

London is the most expensive region for home insurance, where premiums cost over 30% more than the UK average at £183 a year. The capital also saw the most pronounced price rises this year, with the average premium in the city increasing by 2.8% in the last 12 months.

The East Midlands also saw prices increase by 1.7% since this time last year.

John Blevins, pricing manager at Consumer Intelligence, said: “Crime rates, specifically burglary, generally have a larger impact in urban areas and London — being one of the largest — is obviously impacted. These crimes, however, are reducing given home security technology is getting better and more accessible.”

Wales had the largest reduction in premiums over the past 12 months — a decrease of 4.3%. Wales also enjoys some the cheapest premiums overall, with an average annual cost of £124. This is equal to the average price in the North East and just a few pounds less than those in the South West and West Midlands pay (£127).

How age affects premiums

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 £130 for buildings and contents insurance, an increase of 4% in the last three months. The average cost for under-50s is £141, up 2.9% on three months ago.

The index also revealed that older homes are typically more expensive to insure. Properties built between 1850 and 1894 have the highest average premiums at £162, while those built after 2000 are the cheapest to insure at an average of £121.

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