The rise in home insurance premiums

Homeowners in the UK may have noticed that their home insurance premiums have significantly increased. In Q3 2024, the average buildings and contents insurance policy cost £407*– up 16% on the previous year.

Regional differences

Some regions have been harder hit than others, with Londoners experiencing the biggest hike in their home insurance premiums**. For homeowners in the capital, the average home insurance increased in price by about 46 percentage points between Q1 2023 and Q1 2024. Meanwhile, the north west saw the smallest increase (nearly 38 percentage points).

Why the increase?

The rise in home insurance premiums is partly due to inflation, and rising labour and material costs. However, it is also in response to an increased number of claims. Between January - September 2024, insurers paid out a total of £4.1bn in claims* – the highest amount to ever be paid out in the first nine months of a year. This is due to adverse weather conditions caused by climate change. In Q3 2024, damage to homes from storms, heavy rain and frozen pipes cost £136m in claims – 6% higher than the same period in 2023.

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As with all insurance policies, conditions and exclusions will apply

* ABI, 2024

** Quotezone, 2024