Home insurance warning as premiums surge by £53 in just one year
The average cost of insuring a home in the UK rose from £159 in 2023 to £209 this year, an increase of £53.
Martin Lewis urges people to get car and home insurance quote now
Home insurance premiums increased by almost a third (31 percent) year-on-year between January and March this year, according to new research.
The cost of insuring all property types has increased significantly, including bedsits (41 percent), bungalows (34 percent), flats (36 percent), houses (31 percent) and maisonettes (31 percent), according to new research from Compare the Market.
The average cost of insuring a home in the UK rose from £159 in 2023 to £209 this year, an increase of £53.
Homeowners in Northern Ireland saw the largest increases (53 percent) with Greater London (36 percent) and East Anglia (36 percent) also seeing significant jumps.
Insurance premiums for homes that have previously been flooded have risen by 29 percent to £454 on average, making them 117 percent more expensive to insure than properties that have not been previously flooded.
Property type
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 percent 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 percent year-on-year from £163.
Owners of bungalows, houses, and maisonettes have also seen their home insurance premiums increase by over 30 percent.
Property type | Average premium Q1 2023 | Average premium Q1 2024 | Increase |
Bedsit | £301 | £423 | £122 (41%) |
Bungalow | £149 | £199 | £50 (34%) |
Flat | £163 | £221 | £58 (36%) |
House | £160 | £210 | £50 (31%) |
Maisonette | £163 | £214 | £51 (31%) |
Regions
Homeowners in Northern Ireland saw the largest home insurance increases, with the cost of home insurance jumping by 53 percent 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 percent) in addition to Scotland (35 percent) and the South East (35 percent).
Yorkshire and The Humber was the second-most expensive region for home insurance, following Northern Ireland, where the average premium has reached £366.
Region | Average premium Q1 2023 | Average premium Q1 2024 | Increase |
East Anglia | £168 | £229 | £61 (36%) |
East Midlands | £149 | £193 | £44 (30%) |
East of England | £144 | £175 | £31 (22%) |
Greater London | £244 | £333 | £89 (36%) |
Nort East | £133 | £169 | £36 (27%) |
North West | £146 | £189 | £44 (29%) |
Northern Ireland | £250 | £383 | £133 (53%) |
Scotland | £158 | £214 | £56 (35%) |
South East | £173 | £233 | £60 (35%) |
South West | £151 | £198 | £47 (31%) |
Wales | £148 | £193 | £45 (30%) |
West Midlands | £145 | £185 | £40 (28%) |
Yorkshire and The Humber | £293 | £366 | £73 (25%) |
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 percent 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.”
