Home insurance costs up 17% in less than two years
It’s more expensive to insure your home and contents, but there are some smart ways to keep the costs down
Home insurance prices are on the rise again, according to Go.Compare.
The price comparison site said that the cost of home cover has risen consistently since late 2021, when the average buildings and contents insurance stood at £138.
Since then, there has been an increase of just over 17% to a new average of £162.
Why the hikes?
There are several reasons to explain these rises, said Go.Compare, from cost-of-living increases to inflation.
As well as combined buildings policies increasing in cost, both contents-only policies and buildings-only policies have also gone up.
Buildings-only policies faced the largest increase, with a 12% rise year-on-year, to the current average of £130, while the average contents-only insurance has risen to £57.
London is the most expensive place in England for combined buildings and contents insurance, with the average costing £248.
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.”
Top tips to save money
McMillan also offered her top tips to save money on your home insurance.
Here’s what she said:
1. 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.
2. Paying monthly rather than annually for your home insurance can also increase the cost of your home insurance, as interest is often added to monthly insurance payments. The average cost of a combined home insurance policy with monthly payments is £192, 18% more expensive than annual payments, so it is worth paying annually if you can.
3. Improving your home security with smoke alarms and security measures such as burglar alarms and secure locks can also help keep costs down.
4. It is worth checking that you have the right level of cover for your property – don’t take out a policy that offers you a higher value of protection for your contents than you actually need.