Money Wellness
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category iconmoney saver
calendar icon18 Mar 2024

Home insurance prices rise by 40%

The average home insurance price quoted to customers has risen 40.6% in the past 12 months, the latest Consumer Intelligence Home Insurance Price Index found.

This is the highest yearly increase since Consumer Intelligence began tracking quoted prices in 2014.

Has your area been affected?

 The data from Consumer Intelligence found that prices have risen by different amounts depending on the area:

  • Wales, 43.2%
  • South East, 42.6%
  • London, 42.2%
  • Scotland, 40.7%
  • Yorkshire and the Humber, 40.5%
  • North West, 40.3%
  • West Midlands, 40%
  • South West, 39.7%
  • North East, 39.4%
  • East Midlands, 39%
  • Eastern England, 38.9%

Property age has impacted the size of the rises. Newer homes ( built between 1970 and 1985) have seen a higher increase of 43.7%, while house built between 1940 and 1955 had the lowest rise (38.3%).

Consumer Intelligence also  warns  that if you’ve made claims following recent storm damage could see increased prices.

For example, customers claiming for water-related damage have experienced 49.1% increase in quoted prices.

How can I reduce my home insurance costs?

  1. Shop around

You should also compare a range of quotes before deciding. Use price comparison sites like Confused.comCompare the MarketGoCompare, and MoneySuperMarket

It’s a good idea to know exactly what you want to insure before you start comparing, so you only look at policies covering what you need.

2. Renew early

Which? says if your buy your insurance a few weeks before your renewal date, you might get it at a lower premium.

3.  Pay annually

It’s often more expensive to pay monthly because of added interest, so you might find paying annually will reduce costs, if you’re able.

4.  The right excess

The insurance excess is the amount you have to pay towards any claim you make.

Most home insurance companies let you increase the excess on your policy in exchange for a cheaper premium. This is because the amount they have to pay out for a claim will be less if you contribute more.

But be careful because this means that your total costs could be more if you need to make a claim-  always make sure the excess you choose is an amount you could afford.

5. Get a combined-policy

Home insurance can be split into two separate policies:

  • Buildings insurance, which covers the bricks and mortar of your home
  • Contents insurance, which covers your personal belongings

You can buy both together in one combined home insurance policy, which may  work out cheaper than buying them separately

6. secure your house

Aside the obvious reasons, securing your home can also mean cheaper home insurance. Here are some ways you can do this:

  • The right locks: Make sure all your external doors and windows have the right locks. Some insurers tell you what type of locks you need.
  • Burglar alarm: Having a working alarm can reduce your premiums, but make sure the model you have is one approved by the insurer.
  • Install a safe: If you have insured valuables like jewellery under your contents policy, keeping them in a safe may lower your premium. 
  • Join the Neighbourhood Watch scheme: Some insurers reduce your premiums if you are a Neighbourhood Watch member because it could reduce the risk of your home being burgled. Find your local Neighbourhood Watch .


Avatar of Lydia Bell-Jones

Lydia Bell-Jones

With a background in banking, Lydia has been writing professionally for over five years. She is passionate about helping people improve their personal finances and has a particular interest in the connection between money and mental health.

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