The average cost of home insurance has shot up by 31% from January to March 2024 compared to the same period last year, according to Compare the Market. Bedsits are currently paying the highest premiums, while homeowners in Northern Ireland have seen the biggest annual increase. With premiums on the rise, it’s important to find the right policy for your needs. Which? explores why prices are soaring and offers tips on finding the best cover.
The cost of combined buildings and contents policies averaged £209 in the first quarter of 2024, up by £53 from 2023. Rising material and labor costs for home repairs have contributed to higher claims payouts, with insurers shelling out £2.55bn in 2023. Extreme weather events like storms Babet, Ciaran, and Debi have also led to increased claims, with payouts for weather-related damage hitting a record high of £573m.
If your home has been affected by flooding, you can expect to pay significantly more for insurance. Compare the Market data shows that properties with a history of flooding are on average £245 more expensive to insure than those without. Bedsits top the list as the priciest properties to insure, with premiums rising by 41% from last year.
Where you live also plays a role in insurance costs, with Northern Ireland ranking as the second most expensive region for home insurance. Homeowners in the North East pay the least, but still saw a 27% increase from last year. The East of England saw the smallest annual rise at 22%.
To keep costs down, it’s important to shop around and not automatically renew your policy. Renewing early can also help you snag a better deal. Which? is here to help you navigate the world of home insurance and find the best coverage for your needs.