Through the roof: building insurance costs surge 25% amid rising rebuild costs and extreme weather

Homeowners across the UK are facing a sharp spike in building insurance premiums with the latest data from Go.Compare home insurance showing a 25% year on year increase in the cost of buildings cover, with the average premium rising from £167 to £208.*

The latest home insurance price index from Go.Compare also reveals that the average cost of a combined buildings and contents policy has increased by 4%, from £224 in Q1 of 2024 to £232 in Q1 of 2025.**

While building cover has soared, contents-only insurance costs have remained stable, with the median premium unchanged at £63 between Q1 2024 and Q1 2025. 

Nathan Blackler, home insurance expert at Go.Compare, commented: “This rise in the cost of buildings insurance won’t be welcome news to homeowners, but also won’t come as a surprise. The 25% increase in the last year is a result of a few things - we’ve seen an increase in extreme weather, a rise in inflation, and rebuilding costs going through the roof.”

The price index also reveals some of the factors that can impact the cost of your premium, with the size of the property a key factor. 

According to the data, the location of your home can also have an impact - regionally, Northern Ireland remains the most expensive area for home insurance, with a median combined cost of £424 while the North East, in contrast, is the most affordable region, with a combined median cost of £184.

Nathan added, “There are a whole host of factors which can affect the cost of your policy - some of which cannot be changed, but there are also things you can do to make sure you are getting a policy that is right for you at the best price - for example, paying annually instead of monthly could help bring the cost the down, as insurers often add interest to monthly payments. If you are opting for both a buildings and contents insurance policy, it may be worthwhile going with the same insurer as they will likely offer a discount for purchasing both.”

The experts at Go.Compare have put together their top tips for cheaper home insurance, which include: 

• Never auto-renew: Letting your policy renew with the same insurer without shopping around could be costing you. Set a reminder, or mark it in your calendar, to make sure you get the best policy for you at the right price. 

• Look after your home: Keeping up with regular maintenance of your property will help reduce the chance that you need to make a claim on your policy, so fixing a leak or cutting back any trees before they become a problem is a good idea. 

• Time when you shop: Data from Go.Compare reveals that purchasing a new policy around 28 days before the renewal date could help you save money.***

For more top tips on how to save money on your home insurance, visit: https://www.gocompare.com/home-insurance/guide/top-tips-for-cheaper-home-insurance/#subs 

To find out more about the increasing price of home insurance visit: 

https://www.gocompare.com/home-insurance/how-much-does-home-insurance-cost/

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