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Home insurance index

The MoneySuperMarket home insurance index

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UK home insurance prices have hit a five-year high, rising by a staggering 71% compared to premiums in 2019

If home insurance premiums continue to go up, households could potentially be facing annual costs of £487 by 2029, or £845 by 2034

Current home insurance prices

Home insurance is getting dramatically more expensive for UK households. 

Between January and April 2024, the average price paid for home insurance was £281 for a combined buildings and contents policy. 

This figure is up more than a quarter (26%) when compared to the same period in 2023, where the average cost was £223 for an annual policy. 

Compared to the previous quarter, insurance costs have increased by 6%, from £265 in the first three months of 2023.

£281 - the average buildings and contents premium (Jan-March 2024)

Rising premiums will be unwelcome news for household budgets that have already been stretched by spiralling costs.

Unfortunately, our MoneySuperMarket experts predict home premiums are likely to rise even further in 2024. 

Average annual home insurance premiums

Apr-Jun 2023

£236.00

July-Sep 2023

£250.00

Oct-Dec 2023

£265.00

Jan-Mar 2024

£281.00

Year on year

Home insurance policies have hit a five-year high in the UK, rising by a staggering 71%, compared to prices in 2019 when the average annual premium for combined buildings and contents insurance was £172.

Since then, there was only a short period of consistency between 2020 and 2021 – with 2020 having average annual premiums of £186 and 2021 rising only slightly to £190 – but they have otherwise consistently risen over the past five years, with the past two years seeing the most dramatic increase.

If home insurance costs continue to rise at the same rate as the last 5 years, households could potentially be facing annual home insurance premiums of as much as £487 by 2029, or £845 by 2034.

Combined buildings and contents insurance average annual price

Annual premium 2021

£190.00

Annual premium 2022

£222.00

Annual premium 2023

£262.00

Annual premium 2024

£281.00

Why has home insurance become more expensive?

According to Alicia Hempsted, insurance expert at MoneySuperMarket, there are several reasons why premiums are on the rise.

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“The unfortunate news is that home insurance premiums are unlikely to go down in price anytime soon due several factors, from rising house prices and inflation to increased construction and material costs. 

Climate change and extreme weather events are also a serious factor when it comes to home insurance premiums. Simply put, the more risks our homes are exposed to, such as storms, flooding or subsidence, the more likely we are to need to make a claim.  

Combine increased claims and higher repair costs, and it’s a perfect recipe for sky high premiums. 

All this means it’s likely we’ll see premiums continue to rise over the course of the year, making it particularly important to shop around at the moment, where you could save as much as £205 a year on buildings and contents insurance*."

*51% of consumers could save up to £223.11 Consumer Intelligence , June 20024 Exc NI, CI, IOM

Is it cheaper to buy buildings and contents insurance separately?

Unfortunately, home insurance costs have risen across the board, regardless of the type of policy you choose.

However, our data found that it’s still cheaper to combine your policy rather than taking out separate contents insurance and buildings insurance for your home, with those who bundle saving £64 (18%) on average.

Buildings only cover increased by 19% from £194 in 2023 to £239 in the first part of 2024, with the average annual contents only policy rising from £98 to £106, an increase of 8%.

  • £281

    Buildings & contents insurance

    (Average annual cost between Jan-Mar 2024)

  • £239

    Buildings only insurance

    (Average annual cost between Jan-Mar 2024)

  • £106

    Contents only insurance

    (Average annual cost between Jan-Mar 2024)

Average home insurance prices by region

Where you live in is one of the biggest factors when it comes to calculating the cost of home insurance. Insurers set prices according to the likelihood of claims from fire, flood, subsidence and burglary – for example, using the number of related incidents in any given postcode. 

According to our data, Londoners face the highest home insurance premiums in the UK, with the average annual building and contents premium costing £440 in the capital. 

Burglary is more of a problem in urban areas, which is one reason why London has higher premiums than other parts of the UK. Parts of south-east England, including London, are also prone to subsidence 

Year-on-year, households in Northern Ireland have suffered the biggest increase in premiums, seeing bills rise by 26% (£74) to £437. London saw the second highest rise in home insurance costs with a 20% (£91) increase. 

While people in the North East have been hit the least by insurance increases, they still face a 14% (£27) year-on-year premium hike in 2024 putting the average premium in the area at around £219. 

 

How property type affects home insurance costs

Those living in terraced houses can expect to pay the most for their home insurance, with the average cost at the start of 2024 sitting at a hefty £458. That’s more than £100 higher than people with detached houses.

Homes that are attached to each other, such as terraced houses and properties subdivided into flats, can be more at risk of damage by spread of fire or leaked water. 

People living in flats or apartments can expect to see the lowest premiums, with an average building and contents policy costing £261 between January and March 2024.

  • £326

    Detached house

    (Average buildings & contents insurance cost: Jan-Mar 2024)

  • £326

    Semi-detached house

    (Average buildings & contents insurance cost: Jan-Mar 2024)

  • £457

    Terraced houes

    (Average buildings & contents insurance cost: Jan-Mar 2024)

  • £261

    Flat

    (Average buildings & contents insurance cost: Jan-Mar 2024)

  • £286

    Bungalow

    (Average buildings & contents insurance cost: Jan-Mar 2024)

How can I save money on my home insurance?

When it comes to home insurance, it’s incredibly important to ensure that the cover you have is appropriate for your needs. 

However, for most of us, that means aside from moving home or increasing our excess, there isn’t much we can do to reduce the cost of our home insurance premium, unlike other types of cover such a car insurance. 

That means shopping around every year and comparing home insurance prices from a variety of providers is one of the best options to make sure you’re not paying above the odds for the cover you need. 

With MoneySuperMarket’s home insurance comparison service, you can compare insurance costs from 87i providers in just a few minutes, and save an average of up to £196.93 a year. 

You’ll also get access to our SuperSaveClub, our exclusive rewards club where you can earn rewards and perks, including unlimited access to free days out at thousands of venues nationwide, worth £180ii.