Home insurance costs increased in 2023, new data shows

New data from Go.Compare home insurance has revealed that the cost of insuring your home has risen 36% in the last year, costing £213 on average in Q4 of 2023.*

The data shows that it isn’t just combined home insurance policies that have risen - contents only premiums have seen an increase of 30%, rising from £57 to £74, and buildings only saw a similar increase of 29% from £130 to £168.

In terms of property types, the cost of insuring a house is more expensive than other building types with the average combined policy costing £215. This falls slightly for bungalows which costs on average £204 to insure, while a flat cost on average £199 for a combined policy.

The number of bedrooms a property has can also impact the cost of a policy, with the data revealing that the more bedrooms a property has the higher the cost is likely to be. The average cost of a policy for a 1 bedroom place is £158 with the cost rising with each additional bedroom, to £385 for properties with 5 or more bedrooms.

In general, houses cost more to insure as providers will look at things like the cost to rebuild or the total value of your possessions - also houses are at greater risk of damage from extreme weather such as flooding, which leads to higher policy costs.

Ceri McMillan, home insurance expert at Go.Compare, commented: “Throughout 2023 we saw inflation hitting a lot of bills, and it appears that the cost of home insurance policies is no different. The cost-of-living crisis has taken its toll throughout the year and a rise of 36% in combined policies isn’t the outcome that many will be hoping for.”

The data also reveals that combined home insurance policies are on average the most expensive for those in Northern Ireland, although Greater London is only £38 less at an average of £309. Costs are lowest for those in the Northeast of England, with the average cost of a premium sitting below average at £179, almost half of the cost in Northern Ireland.

“There are lots of different factors that will affect the cost of your policy,” Ceri added. “Whether that is the size of your property or where you live, these things can all impact how much you are likely to pay for your insurance.

“If you are concerned about costs, there are things you can do, such as paying monthly rather than annually for your premiums. This is because interest is often added to monthly insurance payments so if you can pay annually this could help your keep costs down. Most insurers will also offer a discount when you purchase a combined home insurance policy rather than separate contents and buildings cover, but always check that you are opting for the right level of cover and make sure that you are shopping around.”

To find out more about the increasing price of home insurance and for more tips on how to keep costs down, visit: https://www.gocompare.com/home-insurance/how-much-does-home-insurance-cost/