UK home insurance premiums up 6% in three months

The average cost of home insurance in the UK has risen by 6% in the past three months as insurers try to keep pace with inflation, according to a new study from Consumer Intelligence.

Related topics:  home insurance,  premiums,  insurance
Warren Lewis
1st March 2023
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"The home insurance market is finally following suit with the motor market, which has observed consistently higher prices throughout the whole of 2022"

The financial services body also found that there are early indications that premiums for buildings and content policies will follow suit over the course of the year despite remaining broadly unchanged over the past 12 months at £148.

Insurance premiums are highest in the capital, with Londoners paying an average of £206 for building and contents policies. At the other end of the spectrum, premiums in the North East are £117. Consumer Intelligence highlighted that, since they began collecting data in 2014, average premiums have risen by 2.7%.

With Londoners now paying almost a third more than the overall UK average to insure their property and contents, additional analysis also revealed that those in the South East and Wales are paying more than the UK average (£148) at £159 and £152, respectively.

The biggest annual premium increases are also found in the capital, with London homeowners seeing premiums rise by 3.9%. In comparison, premiums in the South East have climbed by 1.7% and those in the East Midlands, 0.6%.

The past three months have seen rises across all regions, with the largest increase seen in London (7.4%), South East (7.1%), and the West Midlands (6.5%).

Older households

Those over 50 were found to be paying slightly less for their home insurance with average bills of £141 compared to £153 being paid by under-50s. During the past 12 months, price changes were slight for both age groups, with over-50s seeing a rise of 0.8% and a 0.7% fall for under-50s.

Older properties, such as Victorian homes built between 1850 and 1895, continue to attract the highest premiums, with average annual bills of £185 for joint home and contents policies. More modern properties, built since the start of this century, cost an average of £142 to insure with those built between 1950 and 1975, fractionally less at £141.

Georgia Day, Consumer Intelligence senior insight analyst, said: “The rivalry between the dominant players, as well as the emergence of challenger brands, has kept prices highly competitive in the home insurance market, but we’re beginning to see prices head upwards to meet the demands of inflation.

“It also seems the home insurance market is finally following suit with the motor market, which has observed consistently higher prices throughout the whole of 2022.”

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