But price rises could be slowing as insurers launch more competitive policies
The average quoted price of home insurance rose by 40.6% in the 12 months to January – the highest annual increase since Consumer Intelligence began tracking prices in 2014, the latest Consumer Intelligence Home Insurance Price Index ¹ shows.
The rise in quoted premiums beats the previous all-time high increases of 36.1% and 25.7% set in the previous two quarters. Premiums have most commonly been quoted between £150 and £199 with 29% of quotes falling within that range, Consumer Intelligence’s data shows.
However, there are signs that price rises could be slowing – in the three months to January 2024, quoted premiums rose 7.6% compared with 8.5% and 9.9% in the previous two quarters. Part of the reason for the slowdown is the launch of new, more competitive policies.
Still, customers who have made claims could see additional increases in the coming months following recent storm damage, Consumer Intelligence warns.
In the 12 months to January, customers claiming for water-related damage have seen quoted price rises of 49.1%, while those with buildings claims have seen increases of 47.6%, and those with damage-related claims 47.1%. By comparison, those with no claims have seen increases of 39.9%, and those making theft related claims have seen increases of 39.2%.
“Over the last 12 months, new business quoted premiums for buildings and contents insurance have increased by 40.6%. This is the largest yearly increase we have seen since our tracking began in 2014.
“One driver in the slowing of inflation is the launch of a number of products which have become increasingly more competitive. The main three products driving this were More Than Essentials, Esure Flex and One Click,” says Matthew McMaster, Senior Insight Analyst at Consumer Intelligence.
Long-term view
Overall, quoted premiums have now risen by 53% since Consumer Intelligence first started collecting data in February 2014.
Into the regions
All regions have seen increases in quoted premiums over the past 12 months of around 40%, ranging from Wales at 43.2% to the Eastern region at 38.9%.
Increases in quoted prices over the past three months range from 6.1% in the South West to 10.0% in London.
Age differences
Quoted premiums for under-50s households rose slightly faster than for over-50s households at 41.2% compared with 39.7%.
Over the last three months, quoted premium increases have been broadly similar at 7.8% for under-50s and 7.4% for over-50s.
Property age
Quoted premiums for properties of all ages rose by around 40% in the past year, with homes built between 1970 and 1985 receiving the highest rise in quoted premiums at 43.7%, compared with the lowest rise for homes built between 1940 and 1955 at 38.3%.
Over the past three years, increases in quoted premiums ranged from 8.4% for Victorian-era homes built between 1850 and 1895 at 8.4% and 6.7% for those built between 1940 and 1955.
Data from the Consumer Intelligence Home Insurance Price Index is used by the Office for National Statistics, regulators, and insurance providers as the definitive benchmark of how price is changing for consumers.