In the 12 months to October, the average quoted price of home insurance in the UK jumped by 36.1%, breaking the previous annual record of a 25.7% increase, according to the latest Consumer Intelligence Home Insurance Price Index.
In an emailed release, Consumer Intelligence noted: “Average quoted premiums for buildings and contents policies are expected to soar even higher as damage from Storms Babet and Ciaran is likely to mean further quoted price rises.
“The average of the five cheapest quotes for a buildings and contents policy now stands at £227 compared with £163 in October 2022.”
Region-wise, the steepest climb in quoted premiums was recorded in the South East with 38.5%; the smallest adjustment came from the North East at 32.1%.
In terms of the quoted prices themselves (not the level of increase), London remains at the top as the costliest region while the North East sits at the bottom of the list.
“Quoted prices for Londoners to insure their property and contents are 36% higher than the UK average,” Consumer Intelligence reported. “By comparison, quoted premiums in the North East, the least expensive UK region, are 20% lower than the UK average for an annual home and contents insurance policy.”
Meanwhile Laura Vas, senior insight analyst at Consumer Intelligence, commented: “With Storms Babet and Ciaran causing significant damage to thousands of homes across Britain, we anticipate further increases in premiums over the coming months.
“Homeowners with prior claims may see additional increases in coming months following recent storm damage, although insurers could spread the claim costs across all policyholders driving further market inflation.”
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