Home insurance premiums remain high in 2019
Following an increase in premiums throughout 2018, the average price of combined buildings and contents insurance stabilised in the first three months of 2019, coming in at £138, compared to £139 in Q4, 2018.
However, compared to a year ago, the price of a typical combined buildings and contents policy has gone up by 17%, or £20 from £118 –this should encourage consumers to check prices before they renew with the same insurer.
Insurers tend to reserve their best prices for new customers, which is why it’s always worth shopping around at renewal.
Premiums have also increased for buildings only policies (+£14) and contents only policies (+£7) compared to the same period last year.
Back in 2013, annual premiums were typically around £150, and it’s possible they could continue their upward trajectory, 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.
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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.
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