The latest figures from Go.Compare Home Insurance reveal that the cost of a combined home insurance policy has risen 8.5% in the last year to reach £231 between October and December 2024. This compares to £213 in the same period in 2023.
The comparison site also noted a 1.2% increase between Q3 and Q4 of 2024 when average premiums rose from £228 to £231.
When you dig deeper, the cost of contents-only insurance has remained at £66 on average, while buildings-only cover has risen from £204 to £208 over the past quarter.
Regional split
Policy costs vary significantly across the UK, with Northern Ireland residents still paying the most on average (£427), followed by Greater London (£336). The regional median average costs are listed below:
East Midlands – £212
Greater London – £336
North East – £190
North West – £196
Northern Ireland – £427
Scotland – £228
South East – £259
South West – £216
Wales – £212
West Midlands – £200
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The number of bedrooms in your property also impacts the cost of your premium, with the average cost of a one bedroom home insurance policy coming in at £169 compared to £419 for those with five or more bedrooms.
Nathan Blackler, spokesperson for Go.Compare Home Insurance, said: “The fact that home insurance premiums have risen again won’t be welcome news to households. Several factors are contributing to this rise – severe weather has led to more claims, while increasing property values, rising rebuilding costs due to inflation, material shortages, and labour expenses have all also played a role.
“While many of these factors are out of our control, there are a couple of things that, as a bill payer, you might be able to do to save some money on your insurance. For instance, if you need both buildings cover and contents cover, then opting for a combined policy rather than purchasing a separate policy is a good place to start.”
Below are some more top tips from Go.Compare:
- Pay annually: Spreading the cost over monthly instalments often comes with added interest, making it more expensive. If you can, opting for a one-time annual payment might save you money.
- Check your add-ons: Make sure you are only paying for what you need – for example, if you won’t use things like personal possessions cover outside the home, then there’s no need to buy extra cover.
- Enhance your home security: Installing burglar alarms, smoke detectors, and secure locks can help lower your premiums while keeping your home safer
- Stay on top of home maintenance: Regular upkeep reduces the risk of damage and claims, helping to maintain any no-claims discounts you may have.
- Shop around: It can be tempting to let your home insurance policy automatically renew, but that could be costing you. Use a comparison site to see all your options in one place.
