Home insurance rises by a third

Latest data from Go.Compare has shown that the cost of home insurance has continued to rise, with the average price of combined home insurance now £241, nearly a third higher than it was this time last year.

Go.Compare’s latest Home Insurance Index shows that the cost of insuring a home increased by 8% in Q2 2024, after a 5% rise in the previous quarter (to the previous average of £224). Overall, home insurance is 32% higher than it was this time last year, and 56% higher than the same time two years ago.

With homeowners submitting 55% more claims for storm damage this year than in 2023**, insurance experts are warning that extreme weather is one key factor influencing the rising cost of home insurance.

The new data also revealed variations in home insurance prices across the UK, with home insurance in the most expensive region costing more than double that of other areas.

Northern Ireland has the highest prices on average for combined home insurance at a cost of £416, followed by Greater London at £351. Costing less than half than Northern Ireland on average, the area of the UK with the cheapest home insurance is the North East of England, at £206.

Nathan Blackler, Go.Compare’s Home Insurance Spokesperson, said “The continued rise of home insurance will be unwelcome news for homeowners, particularly as we head towards the winter months, where household bills typically increase.

“There are a number of reasons that can explain the consistent price rises with home insurance. Inflation is still high, and this combined with the rising costs of materials and labour has a knock-on effect on the cost of insurance. Additionally, we have seen a 55% rise in the number of claims submitted for storm damage in the past year – and as insurers factor in the increased risk from adverse weather conditions, this affects prices as well.

“It is worth remembering that besides these factors, there are a wide range of things that will affect your home insurance premium – some we can change, and some we can’t. The size of your property and where you live help determine the price you pay, but so do things like home security measures you have in place.”