Home insurance costs rise again as cost of rebuilding soars

The latest figures reveal that the cost of a combined home insurance policy has risen 8.5% in the last year, with the average policy costing £231 between October and December 2024, compared to £213 in the same period in 2023 - an increase of 8.5%.*

The new price index from Go.Compare Home Insurance also shows that there was a 1.2% increase between Q3 and Q4 of 2024 when average premiums rose from £228 to £231. And while the cost of contents-only insurance has remained at £66 on average, buildings-only insurance has risen from £204 to £208 over the past quarter. 

Analysis of the data shows that policy costs vary significantly across the UK, with Northern Ireland residents still paying the most on average (£427), followed by Greater London (£336). It’s those in the North East who see the cheapest premiums at £190. 

The number of bedrooms in your property can also have an impact on the cost of your premium, with the average cost of a one bedroom home insurance policy coming in at £169 compared to £419 for those with five or more bedrooms.

Nathan Blackler, spokesperson for Go.Compare Home Insurance commented on the findings: “The fact that home insurance premiums have risen again won’t be welcome news to households. Several factors are contributing to this rise – severe weather has led to more claims, while increasing property values, rising rebuilding costs due to inflation, material shortages, and labour expenses have all also played a role.

“While many of these factors are out of our control, there are a couple of things that, as a bill payer, you might be able to do to save some money on your insurance. For instance, if you need both buildings cover and contents cover, then opting for a combined policy rather than purchasing a separate policy is a good place to start. Here are some more of our top tips:

• Pay annually: Spreading the cost over monthly instalments often comes with added interest, making it more expensive. If you can, opting for a one-time annual payment might save you money.
• Check your add-ons: Make sure you are only paying for what you need - for example, if you won’t use things like personal possessions cover outside the home or bicycle insurance, then there’s no need to buy extra cover.
• Enhance your home security: Installing burglar alarms, smoke detectors, and secure locks can help lower your premiums while keeping your home safer
• Stay on top of home maintenance:  Regular upkeep reduces the risk of damage and claims, helping to maintain any no-claims discounts you may have.
• Shop around: It can be tempting to let your home insurance policy automatically renew, but that could be costing you. Use a comparison site to see all your options in one place.”

For more top tips for cheaper home insurance visit here.

Go.Compare releases its Home Insurance Index quarterly, analysing the prices that consumers pay for their home insurance via the comparison site - the full report can be read here: https://www.gocompare.com/home-insurance/how-much-does-home-insurance-cost/