Home insurance costs below inflation

The average cost of buildings and contents insurance rose by less than inflation in the past year, the ABI’s Home Insurance Premium Tracker shows.

In total, the average price paid for home insurance in Q1 2023 was up 6% on the same quarter last year. This is significantly below inflation in the past year.

Average premiums for a combined buildings and contents policy were up 3% on the previous quarter and 6% over the year. Likewise, the average buildings only policy was up 1% on the previous quarter and 5% in the year. Finally, for contents only cover, the average price paid fell by almost 1% on the previous quarter and rose by 1% in a year.

Meanwhile, home insurers paid out £2.5bn in claims, up 6% on 2021.

We can help arrange your home insurance. Contact us today.

As with all insurance policies, conditions and exclusions will apply

7 August, 2023

More news

21 January, 2025

Home insurance premiums are showing signs of stabilising after a period of significant increases, ac

Premium income for home and motor insurance has been rising sharply in recent years. In 2023 the growth rate was 8.8%, but in 2024 this slowed to an estimated 7.9% and is expected to keep easing in th

16 January, 2025

House prices are expected to stay on a positive trajectory over the course of 2025*.

House prices returned to growth in 2024, with prices increasing by 1.5% in the 12 months to October – an improvement on -1.2% the year before. The average UK house price is £267,000 and is expected

6 January, 2025

If you’re buying a home, home insurance is not the only protection you will need – you should al

Income protection If you are unable to work due to illness or injury, income protection insurance provides a replacement income. This is typically 50% – 65% of your earnings rather than the full