Home insurance costs stabilise, latest Price Index shows

New data from Go.Compare home insurance has today revealed that the cost of insuring your home has fallen slightly for the first time since 2022, averaging £212 in Q1 of 2024.*

The comparison site’s latest Home Insurance Index shows that the cost of insuring a home has stabilised in Q1 2024, but it is still 31% higher than this time last year, when the average home insurance policy cost £162.

The data has also revealed that while the average cost of buildings only policies have risen in the first quarter of 2024, from £160 to £167, contents only policies have reduced slightly, from £67 to £63 this quarter.

Across the UK, the data shows that combined home insurance policies are on average the most expensive for those in Northen Ireland at a cost of £369, although Greater London is only £42 less at an average of £317. The area with the lowest home insurance costs is the Northeast of England, with the average premium sitting below average at £175, having seen a slight drop from £179 in the last Home Insurance Index.

Nathan Blackler, Go.Compare’s home insurance spokesperson, said on the Index: “While it’s good news that this latest Index shows home insurance prices stabilising, the average cost is still up 31% year on year, and up 40% since 2022.

“Some of the reasons why we have seen such significant price rises include increased inflation and the rising costs of materials and labour, which have a knock-on effect to the cost of insurance. In addition, unpredictable weather conditions have made leaks and weather related claims more common.

“As well as revealing the average price of a home insurance policy, the Index also shows there are lots of different factors that will affect your premium, from the size of your property to where you live, which can all impact how much you are likely to pay for your insurance. This is why it’s always so important to shop around when your policy is up for renewal to make sure you’re getting the best product and price for your circumstances.”

When it comes to property types, houses typically cost the most to insure, at an average cost of £214. This is because insurers look at things like the rebuild cost of your home and total value of your possessions, as well as the potential risk you pose to the insurer. Houses are at greater risk of damage from extreme weather, like flooding or subsidence. Plus, houses are larger and the more there is to repair, the higher repair costs will likely be.

As the rebuild value of your property increases with its size, home insurance typically increases the more bedrooms you have. The Index shows that the median cost of a combined buildings and contents insurance policy for a two-bedroom home is £160, while for a three-bedroom home it is £192, and £265 for a four-bedroom home.

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/