Home insurance prices rose an average 13 per cent to £341 a year, according to insurer figures.
The average buildings-only insurance policy was £262 at the end of 2023, an increase of 15 per cent, according to the Association of British Insurers (ABI) trade body.
Over the last year, the average contents-only premium rose 7 per cent to £124.
The ABI said home insurance premiums were increasing in part due to winter storms that hit the UK.
Premium uplift: Home cover prices are rising, though insurers argue they are keeping costs down as much as they can to help hard-pressed homeowners
Insurers paid out £352million in claims for storms Babet, Ciaran and Debi.
A winter cold snap also caused a wave of claims for burst water pipes, which insurers are still working out.
Louise Clark, ABI policy adviser, said: ‘The succession of storms that have battered the UK in recent months underlines the importance of home insurance, with insurers supporting thousands of customers whose homes and possessions have been damaged or destroyed.
‘Despite rising cost pressures, insurers are totally committed to doing everything they can to continue to offer competitively priced home insurance.’
The ABI’s figures cover the premiums paid by 16million policyholders, representing around half of all UK homes.
The trade body insisted that the average home insurance premium had fallen between 2014 and 2023 when adjusted for inflation.
The rises in home insurance costs are also dwarfed by the scale of premium hikes in car insurance.
Car insurance costs rose by 29 per cent in 2023 to a record average high of £561 a year.
How to save money on home insurance
Pay yearly, not monthly
You can cut your premium by paying for your home insurance in one go every year.
If you pay monthly, you are effectively taking out a loan on the full annual amount and will usually be charged interest.
The interest could add up to the equivalent of as much as 40 per cent of your annual premium, according to comparison website Uswitch.
Raise your excess
When you make an insurance claim, you normally have to cover the first portion – known as the excess – and your insurer takes care of the rest.
However, to lower your premiums, you can voluntarily raise the excess, which means that if you claim, you will have to pay more yourself.
For example, increasing your excess from zero to £400 could cut your premium by 25 per cent.
However, make sure you can afford the excess in the event of a claim.
Reconsider any add-ons
Insurers often give you the option to add extras to your policy, including emergency cover. Consider whether you really need these add-ons.
Emergency home protection can add approximately £40 to your annual insurance bill, while accidental damage protection can increase your premium by around 10 per cent.
Check with your bank to make sure you are not doubling up, as some accounts may include these extras.
For example, the Lloyds Bank Premier account offers home emergency cover.
Shop around
Even though insurance prices are rising, shopping around is still the best way to ensure you are getting the best price.
Use more than one price comparison website to ensure you are getting a good range of quotes.
But do not buy insurance just based on price. The very cheapest policies may exclude cover you actually want or need, so make sure you read the small print of any policy.
