Home insurance premiums increased by nearly a third (31%) between January and March 2024, research from Compare the Market shows.
The average cost of insuring a home in the UK rose from £159 in 2023 to £209 this year, an increase of £53.
Home insurance premiums increased for all property types in the first three months of 2024, including bedsits, bungalows, flats, houses, and maisonettes.
Bedsits were the most expensive property type to insure, costing £423 on average, and also experienced the largest annual increase in premiums, rising by 41% from £301 in 2023.
Flats were the second-most expensive property type to insure between January and March this year, at £221 on average, and experienced the second-largest increase, rising by 36% year-on-year from £163. Owners of bungalows, houses, and maisonettes have also seen their home insurance premiums increase by over 30%.
Helen Phipps, director at Compare the Market, said: “Home insurance premiums continued to rise in the first three months of the year, pushing up expenses for homeowners across the UK.
“This may in part be due to the rising costs of materials and labour needed for repairing and rebuilding damaged homes. Figures from the Association of British Insurers (ABI) have revealed a jump in the value of claims being paid out by insurers, which rose by nearly 10% to £2.55 billion in 2023.
“As premiums continue to rise, homeowners should take steps to reduce costs where possible. One of the best ways to try and save money is by comparing prices and types of cover. For example, you could save up to £211 on your home insurance through Compare the Market.
“It’s worthwhile checking the amount you are insured for is both sufficient and not an overestimate. You could also save money by buying your buildings and contents insurance together from the same provider.”
Regions
Home insurance premiums have been rising across many regions in the UK. Homeowners in Northern Ireland saw the largest increases, with the cost of home insurance jumping by 53% year-on-year, from £250 in the first three months of 2023, to £383 in the same period this year.
Greater London and East Anglia both experienced increases of more than a third (36%) in addition to Scotland (35%) and the South East (35%).
Yorkshire and The Humber was the second-most expensive region for home insurance, following Northern Ireland, where the average premium has reached £366.
This was followed by Greater London at £333, the South East at £233, and East Anglia at £229.
Wet weather
Properties that have previously flooded were on average £245, or 117%, more expensive to insure than homes that have not previously flooded, with typical insurance premiums for the former rising to £454.
The difference has however slightly narrowed relative to the first three months of 2023, when the cost of insuring previously flooded homes was 121% more expensive.
In addition, premiums for previously flooded homes jumped by £103, or 29%, year-on-year, from £351. This was broadly in line with the increases experienced by all homeowners.
