Home insurance premiums remain high in 2019
Updated July 2019
Home insurance premiums have stabilised during the first half of 2019, with the average price of combined buildings and contents insurance coming in at £141 between April and June. This is up only slightly on the first-quarter average of £138.
Premiums are still much higher over the longer term, however. A year ago, the average premiums between April and June were £125, while they were just £115 during the same period in 2017. Insurers tend to reserve their best prices for new customers, which is why it’s always worth shopping around at renewal.
For buildings-only policies too, premiums are soaring. Even though the average price has increased by under £2 between the first and second quarters of 2019, moving from around £100 to £102, a buildings insurance policy cost an average of £88 in June 2018, and £82.50 in June 2017. Back in 2013, annual premiums for combined home insurance were typically around £150, and it’s possible they could continue their upward trajectory this year, especially if extremes of weather cause flooding or subsidence problems.
Average Premiums by Region
When you insure your property, the main risks to the building include storm and flood damage, fire and subsidence. As far as your belongings are concerned, there's the threat of flooding and fire damage, but for most people the biggest risk on a day-to-day basis is burglary. Insurers set their prices according to the likelihood of claims from these risks, with regional variations corresponding to the number of incidents in any given postcode.
Insurers are also concerned that climate change will trigger more frequent and more violent bouts of extreme weather, leading to floods, storms and associated damage. Any reductions in rainfall over the long term might also lead to an increased number of subsidence claims. As for burglary, official figures show that the rate of 'acquisitive crime', which includes burglary, has fallen, enabling insurers to trim premiums. In general terms, burglary is more of a problem in urban areas, which is one reason why London has higher premiums than other parts of the UK.
Tap a region to find out more:
How Age & Gender Affect Home Insurance Costs
In 2012, it became illegal for insurance companies in the UK (and across Europe) to take gender into account when setting insurance premiums. So, in theory at least, there should be no difference between the prices paid by men and women for identical policies.
In practice, we can see that men tend to pay higher premiums across all age bands. A possible reason for this could be that men, when completing a home insurance quote, put in higher amounts for the rebuild value of their property and higher values for their contents. Another possibility is that the continuing gender pay gap means that men can afford to buy bigger houses and fill them with more expensive items. The good news for both genders is that you can save money on your premiums if you shop around at renewal.
All premium price data is based on the median cheapest on screen price for the given period that customers see when running a quote. Premiums are therefore based on MoneySuperMarket customers only and are representative of the UK average.
From October (Q4) 2018 onwards the on screen price also includes add-ons in line with IDD, as such it may not be accurate to compare figures pre and post this date.
Want to compare home insurance quotes?Get a quote
Our top home insurance guides
Buildings insurance provides cover in the event your home is damaged by flood, fire, subsidence, storm or vandalism. Find out more with our guide.
Whilst contents insurance isn't compulsory, it offers valuable protection for your belongings in the event they were stolen or damaged. Read our guide.
Confused about home insurance and the level of cover you might need? Our guide will help you to find the right insurance to suit you at the right price.
Our top home insurance articles
If you're planning to extend, improve or alter your home, it's best to contact your insurer before you start to check you'll be covered.
It’s a good idea to take out home insurance as soon as you’ve exchanged as this when you become legally responsible for the property.
Whether you’re buying home insurance for the first time or you’re renewing your existing policy, these top tips should help.
When buying home insurance, you often have the option to add various extras to your policy. But are they worth it.