How much does home insurance cost?

Key takeaways

• MoneySuperMarket customers paid an average of £252.93^{^} for home insurance in 2025

• Shopping around for the best deal can save you up to £193^{^} on your policy

• Your premiums can be affected by your property location, size, type and the personal belongings you have inside

How much does home insurance cost?

These are some average prices paid by MoneySuperMarket customers for different types of home insurance. Your own costs could vary as premiums are calculated according to a huge range of factors, from the type and size of your home to the contents within.

💡 Top tip: You can usually save money by combining buildings and contents cover under one policy.

Cost of home insurance

This video information is available as a Text Transcript

Why are home insurance premiums increasing?

Home insurance prices have been rising for several years, according to the Association of British Insurers (ABI), including a 19% jump between 2023 and 2024. This demonstrates how important it is to shop around for home insurance to give yourself the best chance of finding a good deal.

A number of different factors contribute towards the increase in home insurance premiums, including:

• Inflation: as the cost of living climbs, so do the costs associated with repairs and replacements

• Extreme weather: the UK has seen its fair share of weather-related claims, driving up premiums

• Building material costs: with higher prices for materials, the cost of rebuilding and repairs increases

• Claim frequency: An increase in the number of insurance claims naturally leads to higher premiums, including those from fraudulent activities

📣 Did you know? The average home insurance claim worked out at £6,200 in 2025, according to the ABI.

What affects the cost of home insurance?

Insurers will factor in a range of factors and personal details to calculate your overall claim risk when setting home insurance premiums. The specifics will depend on whether they’re insuring your building or the contents within.

💡 Top tip: Comparing quotes 25^{^} days before your renewal could save you £5.35^{^} on average. Don’t renew at the last minute – this can lead to a higher annual premium.

What affects the cost of buildings insurance?

Your buildings insurance policy premiums will depend on the following:

• Location: Postcodes that are at a higher risk of flooding, subsidence, burst pipes or theft and burglary can often see higher premiums

• Age and type of property: Older properties or those with unique features may also cost more to insure

• Home floor space: Larger homes generally mean higher rebuild costs which means higher premiums

• Rebuild value: Your home’s rebuild value encompasses all potential labour and material costs to rebuild your entire home should the worst happen

💡 Top tip: You only need buildings insurance if you own your home. If you rent, your landlord is responsible for the buildings insurance.

What affects the cost of contents insurance?

Your insurer will consider the value of your possessions when setting your contents insurance premiums, as it’s there to protect the movable items within your home - like carpets, appliances and furniture.

High-value items will need to be declared separately if they’re over your single-item claim limit to ensure you have the right level of cover.

Should I get separate contents and buildings cover?

It's usually more expensive, but it may be most suitable in some circumstances. For instance, if you own a flat, the buildings cover might already be included in your management charges.

It's worth comparing the costs and cover of combined and separate policies, as sometimes having them apart can be more beneficial.

If you're unsure, you can speak to an insurance broker, who'll show you a breakdown of all your options. A broker may also have access to deals that aren’t publicly available.

Why do I need to value my home and contents for home insurance?

Getting an accurate and realistic valuation of your home and contents means you can get the right level of cover on your home insurance policy.

Underestimating could leave you underinsured when you need to claim, while overestimating means you’ll be paying more than you need to.

How do I calculate home contents insurance?

It’s best to take a systematic approach when calculating the cover amount you’ll need for your contents policy. Take an inventory of each room and list all items and an approximate valuation, and get professional valuations for high-value items to make sure they’re covered.

How do I calculate home buildings insurance?

Determining the rebuild value of your home can be done through a professional residential property surveyor or by using tools like the MoneySuperMarket comparison tool, which provides estimates based on the information you provide and Building Cost Information Service (BCIS) data.

How do I get cheaper home insurance?

There are a few things you can try to reduce the cost of your home insurance policy:

• Pay annually: Paying your home insurance premiums in full often works out cheaper than spreading the cost over 12 months, even though there’s a bigger upfront cost

• Volunteer a higher excess: Setting your voluntary excess payment higher indicates you’re less likely to make a claim, so you’ll often get cheaper cover as a result

• Combine home insurance policies: Taking out contents and buildings insurance with the same provider can often be cheaper than covering each separately

• Upgrade your home security: Installing insurance-approved alarms and locks will make your home more secure and reduce the risk of burglary and theft, potentially reducing insurance costs too

• Compare quotes: You could save up to £193^{^} by comparing deals on home insurance through MoneySuperMarket