New index reveals home insurance prices stabilise in 2025, but ‘rain everyday UK’ threatens a 2026 rebound

The latest Go.Compare home insurance price index has revealed that the average cost of a combined buildings‑and‑contents policy was £225 in Q4 2025.*

These latest figures indicate that the market is stabilising after previous spikes seen in 2024 – in fact, year on year, combined policy costs fell 2.6%, from £231 in Q4 2024 to £225 in Q4 2025.

Nathan Blackler, home‑insurance expert at Go.Compare, commented on the latest Index:

“It’s great to see premiums for buildings and contents coming down and with new insurers entering the market, we’re seeing the effects of an increasingly competitive landscape, meaning that brands remain competitive.”

However, Nathan warns that this latest drop in premiums could be short-lived, “We’ve seen an exceptionally wet start to 2026, with rain recorded somewhere in the UK every day so far – this, alongside record weather‑related payouts in 2025** could put upward pressure on claims and future pricing.*** As a result, we may see insurers show caution in their pricing to protect themselves.

“Regardless of the price your current insurer is providing, we would always suggest shopping around at renewal to make sure you are getting the best deal available, with the right level of cover included. Insurers take a range of factors into account when providing a quote, including:

• Where your home is: Previous data from Go.Compare shows that Northern Ireland is the most expensive region with a median combined premium of £464, while Greater London is £318. At the other end of the scale, the Northeast is the cheapest at £184, with Wales at £207 and Scotland at £225. Location matters because postcodes reflect different risk profiles (e.g., crime, flood exposure and property values), which is why some parts of the UK are much more expensive to insure than others.*

• The number of bedrooms: Premiums typically rise with home size because rebuild values and the likely value of contents increase as you add bedrooms. Go.Compare’s data shows a 1‑bed property costs £168, 2‑bed £174, 3‑bed £207 and 4‑bed £272, meaning a four‑bed home costs about 62% more to insure than a one‑bed.

• The type of property: Bungalows are the most expensive property type to insure. Reasons include more ground‑level access points (raising break‑in risk), and a larger roof‑to‑living‑space ratio pushing up potential rebuild costs; that said differences between houses, flats and bungalows are generally small because so many other factors influence individual pricing.

• Other factors: Older homes are pricier to insure, properties built before 1950 cost about 68% more (buildings cover) than 2020s new builds. Materials matter too - stone‑walled homes show higher typical buildings premiums (£208) than brick (£184), with “other” materials around £204. These differences reflect durability, repair complexity and risk.”

To read more about the cost of home insurance and the factors at play, visit: https://www.gocompare.com/home-insurance/how-much-does-home-insurance-cost/

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