The average quoted price of home insurance has rocketed 25.7 per cent in the past year, with prices jumping nearly 10 per cent in the past three months.
The average quoted premiums for buildings and contents policies have now reached £212, according to the latest Consumer Intelligence price index.
Households have been told to brace for further increases in the coming months with quoted prices rising 9.9 per cent in the three months to September, the highest quarterly increase on record.
The average premium for buildings and contents policies has surged 25% to £212
‘This is the first time that 12-month inflation has broken into double digits and much of the inflation has happened this year with quoted premiums up 23.3 per cent year to date,’ says Georgia Day, senior insight analyst at Consumer Intelligence.
‘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 which is one of the most common claims in the home insurance market according to GoCompare.’
Overall, quoted premiums have now risen by 31.1 per cent since Consumer Intelligence first started collecting data in February 2014 – showing just how steep the rises have been in the past year.
Over-50s are seeing lower quotes for their home insurance with average quoted premiums at £199 compared with £222 for the under-50s.
Homeowners in London face the steepest hikes to their policies, with premiums reaching £316 – 49 per cent higher than the UK average.
The South East is the only other region to see quoted prices above the average at £227.
All regions have seen annual increases in quoted prices of more than 20 per cent, although the North East is the cheapest region with average quoted prices of £184.
Older properties continue to have the highest quoted premiums with Victorian homes built between 1850 and 1895 seeing average quoted costs of £279 for joint home and contents policies.
Premiums for homes built between 1940 and 1955 are the cheapest at £194, slightly cheaper than the £197 for those built between 1985 and 2000 and those built since 2000 at £198.
| Region | Price Index Last Year (July 22-July 23) | Price Index Last 3 months (April 23-July 23) | Average Premium July 23 |
|---|---|---|---|
| London | +27.8% | +10.1% | £316 |
| South East | +28.4% | +11.5% | £227 |
| Eastern | +26.4% | +10.3% | £209 |
| Yorkshire & The Humber | +26.2% | +9.8% | £202 |
| South West | +24.8% | +10.5% | £195 |
| Scotland | +25% | +9.6% | £194 |
| West Midlands | +22.2% | +9.6% | £194 |
| Wales | +26.5% | +9.2% | £193 |
| East Midlands | +24.4% | +8.7% | £191 |
| North West | +25.3% | +9% | £190 |
| North East | +24.3% | +9.7% | £184 |
How to save money on your home insurance
Consider switching, not renewing
It could be worth trying a couple of different comparison sites to cover all bases, as well as going to insurers direct.
Cut your risk – and your premium
Joining a Neighbourhood Watch scheme, fitting better locks, having a burglar alarm installed or getting better smoke alarms can all reduce insurance premiums.
Get a no-claims discount
Cheaper is not always better When picking an insurance policy, it is always best to plan for the worst case scenario. A little bit extra on premiums will cost far less than a very expensive bill for your buildings or contents not being covered properly.
Read our full guide to saving money on your home insurance here.
