Home insurance premium rise by 17% in just two years
The cost of home insurance has risen 17% since 2021, adding an extra £24 to the average annual bill, new data has revealed.
Combined buildings and contents insurance bills have been rising steadily over the last two years from £138 to an average of £162.
Buildings insurance policies have risen 12% year-on-year from £116 to an average of £130. Contents policies are up by £1, from £56 to £57 on average.
People who pay for a combined home insurance policy with monthly payments are paying 18% more, at an average of £192, than those who pay in one go because of the interest applied to monthly payments.
The average cost of a combined policy for a flat is now £179, for a house it’s £171, and for a bungalow it’s £161, according to the data from Go.Compare.
The comparison website said inflation and the cost-of-living crisis, which has pushed up the cost of labour and building supplies, are two reasons for the rise.
It also said a rise in extreme weather conditions in the UK could be contributing to the price rise. UK houses aren’t built to withstand extreme heat or cold and that means cracks form more frequently and this can lead to subsidence and leaks happening more often.
The data comes as recent news revealed a rise in the number of burglaries which could also see prices rise for home insurance.
‘Rising costs across the board’
Ceri McMillan, Go.Compare home insurance spokesperson, said: “In 2023, we have continued to see rising costs across the board, from food to fuel and everyday bills, too.
“The cost-of-living crisis is continuing to have its impact, and insurers are also seeing cost increases in materials and labour. Unfortunately, all these factors combined mean increased costs in a range of areas – including our home insurance.
“One way to make sure you are keeping your prices down is by looking for the best deals. Using an online comparison service is quick and easy, and will help you benchmark all the offers available to make sure you get the cover you need at a good price.
“Remember that most insurers will offer their customers a discount for purchasing a combined home insurance policy, so it is often better to do this, rather than purchasing contents and building cover separately.”