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Home insurance quotes surge by more than 25% in record annual increase

Nick Cheek
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Nick Cheek

The average quoted price of home insurance has accelerated by 25.7%, which is the highest ever annual increase on record, according to insurance experts.

Analysis from Consumer Intelligence revealed the record increases following the release of its latest Home Insurance Price Index. The average quoted premiums for buildings and contents policies are currently set at £232, and they could rise further

Over the past three months, the quote prices have risen by 9.9%, which is the highest quarterly increase that the consumer insurance group has found since it began tracking quotes back in 2004.

Londoners face higher quotes

The latest index found that those who lived in the capital are facing the highest insurance quotes for building and contents policies, which reached £316. In contrast, the North East was the lowest quote price at £184.

Overall, Londoners are quoted at 4% above the national average to insure their property and contents. The South East is the only other region where insurance customers are charged above the UK average at £227.

However, it is homeowners in Scotland who have faced the highest increase in premiums, with an annual rise of 12.1%, whereas, in London, the rises were the lowest year-on-year at 6.4%.

All regions have witnesses annual premium increases of more than a fifth.

Age differences

Consumer Intelligence also discovered disparities according to age, where customers over 50 have seen a premium rise of £199, compared to £222 for those under 50.

Quoted prices rose slightly faster for the under 50s in the past 12 months at 26.3%, in contrast to 25 % for the over 50s.

There also differences in property ages, as predictably older properties cost more to cover. For example, Victorian-era homes, built between 1850 and 1895, saw average quoted costs of £279 for joint home and contents policies.

Homes that were built between 1940 and 1955 saw the lowest premiums at £194, marginally cheaper than houses built between 1985 and 2000 at £197.

The homes that have been built since 2000 were priced at £198 to insure.

Quoted prices rose across the board for properties all of ages year-on year, where homes built between 1940 and 1955 and between 1955 and 1970 grew the least at 24.2%.

The largest annual increases were for homes built between 1910 and 1925 at 28.3%.

Consumer Intelligence also revealed that overall quoted premiums have now risen by 31.1%, since it first started to collect the relevant data 19 years ago .

Price inflation in double digits for the first time

 Georgia Day, a senior insight analyst at Consumer Intelligence, said: “This is the first time that 12-month inflation has broken into double digits and much of the inflation has happened this year with quoted premiums up 23.3% year to date.”

“People who have made claims are likely to feel the pinch even more as our data shows the highest increases for customers who have made an escape of water claim, which is one of the most common claims in the home insurance market according to Go.Compare.”

Related: How to save on premiums as home insurance prices rise