New data shows home insurance costs have risen consistently since 2021

New data from Go.Compare shows that home insurance prices are on the rise once again. In fact, costs have consistently risen since late 2021, when the average buildings and contents insurance stood at £138.* Since then, there has been an increase of just over 17%, to a new average of £162.**

There are several factors that might explain these rises, from cost-of-living increases to inflation.

As well as combined buildings policies increasing in cost, both contents-only policies and buildings-only policies have also gone up. Buildings-only policies faced the largest increase, with a 12% rise year-on-year, to the current average of £130, while the average contents-only insurance has risen to £57.

The data from Go.Compare also reveals, unsurprisingly, that London is the most expensive place in England for combined buildings and contents insurance, with the average costing £248.

Ceri McMillan, Go.Compare home insurance spokesperson, said: “In 2023 we have continued to see rising costs across the board, from food to fuel and everyday bills, too.  The cost-of-living crisis is continuing to have its impact, and insurers are also seeing cost increases in materials and labour. Unfortunately, all these factors combined mean increased costs in a range of areas – including our home insurance.

“One way to make sure you are keeping your prices down is by looking for the best deals. Using an online comparison service is quick and easy, and will help you benchmark all the offers available to make sure you get the cover you need at a good price.

“Remember that most insurers will offer their customers a discount for purchasing a combined home insurance policy, so it is often better to do this, rather than purchasing contents and building cover separately.”

“There are lots of other factors that can affect the cost of your home insurance. The type and size of your property, as well as its location, can all make a difference.  Data shows that properties with five or more bedrooms face the highest insurance costs, while perhaps surprisingly, a two-bedroom property can see cheaper insurance costs than a one-bed property in some cases.***

“Paying monthly rather than annually for your home insurance can also increase the cost of your home insurance, as interest is often added to monthly insurance payments. The average cost of a combined home insurance policy with monthly payments is £192, 18% more expensive than annual payments,** so it is worth paying annually if you can.

“Improving your home security with smoke alarms and security measures such as burglar alarms and secure locks can also help keep costs down. It is also worth checking that you have the right level of cover for your property – don’t take out a policy that offers you a higher value of protection for your contents than you actually need”, Ceri advises.

“We are committed to helping people find affordable insurance – rather than being tempted to forego renewal. Home insurance is an important protection that no-one should be without, particularly if the worst were to happen.”

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/

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