Figures from the second quarter of this year show that the average cost of home insurance has generally remained unchanged.
The average cost of combined buildings and contents cover was £391 per year for policies taken out between April and June, £2 cheaper than quarter one. This is still relatively high and only slightly lower than the peak of £399 seen in Q3 2024. Premiums are high because insurers are paying out more in claims – £1.6 bn was paid out in Q2, up from £1.5bn the previous quarter. Bad weather is driving this increase, with £322m paid out for damage related to storms, heavy rainfall and frozen pipes.
Saving tips
• It’s important to be cautious of auto-renewal clauses in your policy as you may get locked into another 12 months before you can check the market for a better offer.
• Set a reminder a few weeks before your policy is due to come to an end so you can take your time to renew and get advice. It is often more expensive to buy cover if you leave it to the last minute.
• We understand that paying monthly can feel more manageable than a big annual payment. However, if you can budget effectively, it is often cheaper to pay for the year.
As with all insurance policies, conditions and exclusions will apply.
Sources:
https://www.which.co.uk/news/article/whats-happening-to-home-insurance-premiums-a3EjJ5O6GVvP
