Home insurance costs rose by more than a third last year

Home insurance costs rose by more than a third last year
Christina Hoghton
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Christina Hoghton

The average cost of an annual combined home insurance policy at the end of 2023 was £213.

That’s according to Go Compare, which noted a 36% rise in premiums on building and contents policies last year.

The price comparison site said it isn’t just combined home insurance policies that have risen. Contents-only premiums have seen an increase of 30%, rising from £57 to £74, and buildings-only saw a similar increase of 29% from £130 to £168.

Property type matters

The cost of insuring a house is more expensive than other building types, with the average combined policy costing £215.

This falls slightly for bungalows, which cost on average £204 to insure, while a flat costs on average £199 for a combined policy.

The number of bedrooms a property has also impacts the cost of a policy, said Go Compare. The average cost of a policy for a one-bedroom home is £158, compared to £385 for properties with five or more bedrooms.

Ceri McMillan, home insurance expert at GoCompare, said: “Throughout 2023, we saw inflation hitting a lot of bills, and it appears that the cost of home insurance policies is no different.

“The cost-of-living crisis has taken its toll throughout the year, and a rise of 36% in combined policies isn’t the outcome that many will be hoping for.”

Regional variations

The data also revealed that combined home insurance policies are on average most expensive for those in Northern Ireland, where they cost £347. Although, Greater London is only £38 less at an average of £309.

Costs are lowest for those in the North East, with the average cost of a premium sitting below average at £179, almost half of the cost in Northern Ireland.

McMillan added: “There are lots of different factors that will affect the cost of your policy. Whether that is the size of your property or where you live, these things can all impact how much you are likely to pay for your insurance.

“If you are concerned about costs, there are things you can do, such as paying annually for your premiums. This is because interest is often added to monthly insurance payments, so if you can pay annually, this could help your keep costs down.

“Most insurers will also offer a discount when you purchase a combined home insurance policy, rather than separate contents and buildings cover, but always check that you are opting for the right level of cover and make sure that you are shopping around.”