The average cost of home insurance in the UK in 2022 is the lowest recorded by the Association of British Insurers (ABI) since it began collecting price data in 2012.
According to the latest Household Insurance Premium Tracker released by the ABI, last year consumers paid an average of £300 for combined buildings and contents insurance – a 6% decline from a year ago. Also the lowest in a decade are the average prices for separate buildings and contents policies, at £228 and £116, respectively.
It was suggested, however, that this year might be a different story because of rising subsidence claims and frozen pipe payouts, as well as increases in labour costs and prices of building materials.
“Storms Dudley, Eunice, and Franklin in February [2022] led to insurers dealing with 170,000 claims for property damage, paying out £473 million to support affected customers,” noted the trade body.
“The record-breaking summer heatwave temperatures saw several insurers reporting or predicting a significant rise in subsidence claims, the full costs of which are likely to materialise during 2023. The cold snap last December led to a surge in claims for damage caused by burst frozen pipes as reported by several insurers.”
ABI general insurance manager Laura Hughes, meanwhile, added that UK home insurers will continue to do all they can to offer customers competitive deals.
