The perfect storm as home insurance prices continue to rise
- Claims for storm damage have risen by 55% since 2023
- Home premiums rise 8% from Q1 2024
- Premiums are 32% higher than this time last year
The latest data from Go.Compare home insurance shows that the cost of insuring your home has continued to rise, with the average price of combined home insurance now £241, nearly a third higher than it was this time last year.*
Go.Compare’s latest Home Insurance Index shows that the cost of insuring a home increased by 8% in Q2 2024, after a 5% rise in the previous quarter (to the previous average of £224). Overall, home insurance is 32% higher than it was this time last year, and 56% higher than the same time two years ago.
With homeowners submitting 55% more claims for storm damage this year than in 2023**, insurance experts are warning that extreme weather is one key factor influencing the rising cost of home insurance.
|
Date |
Average cost of home insurance* |
|
Q2 2024 |
241 |
|
Q1 2024 |
224 |
|
Q4 2023 |
213 |
|
Q3 2023 |
202 |
|
Q2 2023 |
182 |
|
Q1 2023 |
170 |
|
Q4 2022 |
157 |
|
Q3 2022 |
156 |
|
Q2 2022 |
154 |
The new data also revealed variations in home insurance prices across the UK, with home insurance in the most expensive region costing more than double that of other areas.
Northern Ireland has the highest prices on average for combined home insurance at a cost of £416, followed by Greater London at £351. Costing less than half than Northern Ireland on average, the area of the UK with the cheapest home insurance is the North East of England, at £206.
Nathan Blackler, Go.Compare’s home insurance spokesperson, said on the Index: “The continued rise of home insurance will be unwelcome news for homeowners, particularly as we head towards the winter months, where household bills typically increase.
“There are a number of reasons that can explain the consistent price rises with home insurance. Inflation is still high, and this combined with the rising costs of materials and labour has a knock-on effect on the cost of insurance. Additionally, we have seen a 55% rise in the number of claims submitted for storm damage in the past year - and as insurers factor in the increased risk from adverse weather conditions, this affects prices as well.
“It is worth remembering that besides these factors, there are a wide range of things that will affect your home insurance premium - some we can change, and some we can’t. The size of your property and where you live help determine the price you pay, but so do things like home security measures you have in place. There are a number of ways you can help lower the cost of your home insurance - we recommend:
- Paying annually - this will help you avoid any added interest and fees you might see on monthly instalments.
- Improving your home security - adding insurer-approved locks and alarms can help lower your premium, as your home is considered safer.
- Keeping up with home maintenance - making sure your home and garden are in top condition will lessen the risk of you needing to make a claim and help protect any no-claims discount you have.
- Avoid unnecessary add-ons - look closely at your policy details and only pay for the cover you need.
- Don’t rely on inaccurate estimates - take care when calculating your rebuild cost and the value of your contents, as this will impact the cost of your policy.”
To find out more about the cost 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/
Contact Information
Rubie Barker
Notes to editors
-ENDS-
Notes to editor
*Average median costs calculated from home insurance policies purchased through Go.Compare from 1 April 2024 to 30 June 2024.
**Data based on home insurance quotes completed through Go.Compare: between 01/01/2024 - 31/05/2024 there were 6264 total claims for storm damage (13.25% of all claims). Between 01/01/2023 - 31/05/2023 there were 4035 total claims for storm damage (13.08% of all claims).
For further information please contact:
Lynsey Walden – lynsey.walden@gocompare.com
Kath Chadwick – Kathryn.chadwick@gocompare.com
Or you can call 02920 020360.
Keep up-to-date with GoCompare on Twitter; @Go.Compare
About Go.Compare
Go.Compare is a comparison website that enables people to compare the costs and features of a wide variety of insurance policies, financial products and energy tariffs.
It does not charge people to use its services and does not accept advertising or sponsored listings, so all product comparisons are unbiased. Go.Compare makes its money through fees paid by the providers of products that appear on its various comparison services when a customer buys through the site.
When it launched in 2006, it was the first comparison site to focus on displaying policy details rather than just listing prices, with the aim of helping people to make better-informed decisions when buying their insurance. It is this approach to comparing products that secured the company an invitation to join the British Insurance Brokers’ Association (BIBA) in 2008, and it is still the only comparison site to be a member of this organisation.
Go.Compare has remained dedicated to helping people choose the most appropriate products rather than just the cheapest and works with Defaqto, the independent financial researcher, to integrate additional policy information into a number of its insurance comparison services. This allows people to compare up to an extra 30 features of cover.
Go.Compare is part of Future Plc and is authorised and regulated by the Financial Conduct Authority (FCA).
More information can be found here www.gocompare.com or here https://www.futureplc.com/brands/.