The average home insurance premium climbed from £187 in the third quarter of 2023 to £227 during the same period in 2024, according to Compare the Market.
However, the price comparison website noted that the quarterly increase has slowed compared to the previous jump in premiums of 32% year-on-year between April and June 2024.
Where are home insurance premiums rising the fastest?
Between July and September 2024, home insurance premiums increased most significantly for homeowners in Northern Ireland, climbing by 45% year-on-year to £450 on average.
After Northern Ireland, the most significant increases were seen in East Anglia (24%), Greater London (24%), Scotland (25%), and the South East (25%). Alongside those in Northern Ireland, homeowners in Yorkshire and the Humber (£384), Greater London (£361), and the South East (£254) had some of the most expensive home insurance bills in the country.
Nevertheless, the year-on-year price increases reported across all regions from July to September represent a deceleration in comparison to the previous quarter. Between April and June, premiums grew year-on-year by 62% in Northern Ireland, 39% in Greater London, 36% in the South East, 35% in East Anglia, and 35% in Scotland.
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Bedsits, bungalows and flats saw biggest rises
Home insurance costs for bedsits increased most significantly between July and September, with premiums climbing by 50% year-on-year.
Insurance costs for detached bungalows, ground-floor flats, and top-floor flats also grew considerably during the third quarter – by 32%, 31% and 28% respectively.
Bedsits were also the most expensive property type to insure of those included in Compare the Market’s study, costing homeowners £448 on average.
Detached houses were the second-most expensive property type to insure between July and September (£275), followed by ground-floor flats (£264) and detached bungalows (£241).
But year-on-year increases have also slowed for all property types – aside from bedsits – in comparison to the second quarter. From April to June this year, premiums climbed year-on-year by 38% for detached bungalows, 42% for ground-floor flats, and 32% for top-floor flats.
Previously flooded homes
Homeowners with properties that have been previously flooded continued to see their insurance premiums rise at an accelerating pace between July and September.
The average cost of insuring a home that has previously flooded in the third quarter of this year was £485, a year-on-year increase of 30% and a sharper jump than the 27% change reported in the second quarter.
Helen Phipps, director at Compare the Market, said: “It’s positive to see that home insurance costs are now rising at a slower rate, which will be good news to many homeowners. However, compared to last year, premiums are still expensive, which is difficult for lots of people who are also faced with other high household bills.
“People with homes that have been previously flooded are particularly vulnerable, with quarterly price rises not yet showing signs of slowing. This reflects a long-term trend of increasing home insurance claims for weather-related damage, which reached a record £573m last year, according to the Association of British Insurers.”
