Home insurance prices see steep rise - report

However, there may be some good news in 2025

Home insurance prices see steep rise - report

Property

By Josh Recamara

The average quoted price of home insurance rose by 10.5% in 2024 but prices have since started to decline, according to the latest Consumer Intelligence Home Insurance Price Index. 

Over the past three months, quoted premiums for buildings and contents insurance dropped by 2.2%. The data indicates that most of the price increases last year occurred in the first four months.  

Consumer Intelligence reported that premiums were most commonly quoted between £150 and £199, with 24% of quotes in that range. In December 2024, 54% of customers received quotes below £200, compared to 69% in December 2023. 

For customers without claims or those claiming for buildings or theft, quoted premiums fell by 2% to 4% over the past three months. However, customers making escape-of-water claims saw no changes. 

Over the past year, policyholders claiming for theft experienced a 14% increase in quoted premiums, while those claiming for buildings saw a 3% rise. Non-claimants and escape-of-water claimants faced premium increases of 10% to 11%. 

“Most of the inflation in quoted premiums happened in the first four months of last year with the rest of the year seeing relative stability and decreases,” said Matthew McMaster, senior insight analyst at Consumer Intelligence. 

McMaster also noted the introduction of new brands to the market. “The last three months of 2024 saw the entry of two new brands – Super and Epic – from Lemonade and the continued roll out of the company’s most affordable product Lemonade Ace, making them one of the most competitive brands in the marketplace,” he added. 

What is the price of home insurance in your region? 

Quoted premiums decreased across all regions over the past three months, with the West Midlands experiencing the largest drop at 3.3%. The South West and North East both saw declines of 3.1%. Scotland reported the smallest decrease at 0.7%. 

Over the past 12 months, however, premiums rose in all regions. Scotland recorded the highest increase at 14.9%, while the West Midlands experienced the lowest at 4%. 

Households led by individuals over 50 faced faster premium increases, with quoted prices rising by 13.6% in the past year compared to an 8% rise for under-50s. However, under-50s saw larger reductions in premiums over the past three months, with a 2.8% drop compared to 1.8% for over-50s. 

Quoted premiums rose for all property age groups over the past year, with increases ranging from 13.3% for homes built between 1910 and 1925, to 8.9% for homes built between 1940 and 1955. 

In the past three months, premiums fell for most property age groups, with the largest drops of 2.7% seen for homes built between 1970 and 1985, and those built between 1985 and 2000. Homes built between 1850 and 1895 saw no change during this period. 

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