Average home insurance quote has jumped by 25.7% annually, say experts

The average quoted price of home insurance has surged by around a quarter (25.7%) annually, according to an index.

Data analytics firm Consumer Intelligence, which compiled the report, said this is the biggest jump it has seen in records going back to 2014.

The average premium quoted for a buildings and contents policy was £212 in July, it found, up from £168 in July 2022. The figures have been rounded off.

Across Britain, people in London continue to face the highest typical quoted premiums at £316 for building and contents policies, with the North East the cheapest region with an average quoted price of £184.

The firm looks at prices quoted on price comparison websites when carrying out its research.

Georgia Day, senior insight analyst at Consumer Intelligence, said: “People who have made claims are likely to feel the pinch even more as our data shows the highest increases for customers who have made an ‘escape of water’ claim.”

Older householders have seen lower quotes for their home insurance, with average quoted premiums for over-50s at £199, compared with £222 for under-50s, researchers found.

Quoted prices rose slightly faster for the under-50s in the previous 12 months, at 26.3%, compared with 25.0% for the over-50s.

Older properties continue to attract the highest quoted premiums with Victorian-era homes built between 1850 and 1895 seeing average quoted costs of £279 for joint home and contents policies.

Average quoted premiums for homes built between 1940 and 1955 are the lowest, at £194.

A spokesperson for the Association of British Insurers (ABI) said: “Insurers appreciate these continue to be tough times for many households coping with the rising cost of living and continue to do all they can to keep premiums as competitive as possible.

“Last year’s extreme weather and the surge in subsidence claims was a dramatic reminder of the importance of insurance, and insurers paid out £2.9 billion to help customers cope with unexpected events, such as storm damage.”

The spokesperson added: “If you’re worried about being able to afford your home insurance, speak to your insurer about any alternative payment options that may be available.”

The ABI said it will shortly be publishing its own home insurance premium tracker, which looks at the price consumers pay for their cover rather than the price they are quoted.

Here are price rises for quotes over the past year, according to Consumer Intelligence, followed by the average premium. The firm takes an average of the cheapest premiums to indicate the prices people may be likely to pay:

London, 27.8%, £316

South East, 28.4%, £227

Eastern England, 26.4%, £209

Yorkshire and the Humber, 26.2%, £202

South West, 24.8%, £195

Scotland, 25.0%, £194

West Midlands, 22.2%, £194

Wales, 26.5%, £193

East Midlands, 24.4%, £191

North West, 25.3%, £190

North East, 24.3%, £184