Home insurance costs surge by 40% in a year: ways to save

The average home insurance price quoted to customers rose by 40.6% in the 12 months to January, according to the latest Consumer Intelligence Home Insurance Price Index.

This marks the highest annual increase since Consumer Intelligence began tracking quoted prices in 2014, surpassing the increases of 36.1% and 25.7% set in the previous two quarters. 

Here, we reveal how home insurance prices have changed across Britain,  what's next for prices and how to save.

Compare home insurance deals

Check Which? insurance ratings and compare deals using the service provided by Confused.com

Get a quote

• Find out more: check our picks for the best home insurance companies in 2024

How home insurance prices have changed in your area

Here's how the the average quoted price of home insurance rose across Britain by region from January 2023 to January 2024.

• Wales, 43.2%
• South East, 42.6%
• London, 42.2%
• Scotland, 40.7%
• Yorkshire and the Humber, 40.5%
• North West, 40.3%
• West Midlands, 40%
• South West, 39.7%
• North East, 39.4%
• East Midlands, 39%
• Eastern England, 38.9%

The data shows premiums have most commonly been quoted between £150 and £199, with 29% of quotes falling within that range.

Consumer Intelligence found quoted premiums increased slightly faster for under-50s households (41.2%) compared to over-50s households (39.7%).

Property age also impacted the size of the rises. Homes built between 1970 and 1985 had the highest increase (43.7%), while those built between 1940 and 1955 had the lowest rise (38.3%).

What's next for home insurance prices?

The good news is, Consumer Intelligence found there are signs prices rises could be slowing.

In the three months to January 2024, quoted premiums rose by 7.6% - lower than the rises of 8.5% and 9.9% recorded in the previous two quarters.

Consumer Intelligence says this is down to the launch of new competitive policies. However, it warns those who've made claims following recent storm damage could see increased premiums.

Customers claiming for water-related damage have experienced 49.1% increase in quoted prices, underscoring the impact of recent storms, such as Babet and Ciara, on insurance costs.

How can I reduce the cost of my home insurance?

Here are our top tips for making a saving on your home insuranc premiums.

1. Explore your options

Start by shopping around using price comparison sites such as Confused.com, Compare the Market, GoCompare, and MoneySuperMarket. 

For a better understanding of how different home insurance policies stack up against each other, consider checking out our guides on contents and buildings insurance.

2. Avoid auto-renewal and haggle

Never agree to auto-renewal clauses in your home insurance agreement. Instead, use competitive quotes to negotiate with your insurer and switch if necessary.

3. Renew early

Purchasing insurance a few weeks in advance can often result in lower premiums compared to last-minute arrangements.

4. Consider paying annually

While paying monthly may seem convenient, it's typically the more expensive option due to added interest. Consider paying annually if you’re able, to help reduce overall costs.

• Find out more: paying monthly makes car insurance even pricier

5. Set the correct excess

If you're willing to pay a higher excess, your insurer will offer a cheaper premium. However, make sure to select your excess carefully.

Setting the bar too high, especially if it starts getting too close to your claims limit, might make claiming on your insurance either pointless or too expensive.

6. Pick quality over price

Choosing the cheapest policy may not actually save you money in the long term. 

If your policy includes high excess fees or important exclusions, you could face financial difficulties when making a claim. So, it's important to thoroughly review the policy details before making a purchase and making sure it meets your needs.

• Find out more: how to find cheap home insurance

Which? Limited is registered in England and Wales to 2 Marylebone Road, London NW1 4DF, company number 00677665  and is an Introducer Appointed Representative (FRN 610689) of the following:

1. Inspop.com Ltd for the introduction of non-investment motor, home, travel and pet insurance, who are authorised and regulated by the Financial Conduct Authority (FCA) to provide advice and arrange non-investment motor, home, travel and pet insurance products (FRN310635). Inspop.com Ltd is authorised and regulated by the Financial Conduct Authority (FCA) to provide advice and arrange non-investment motor, home, travel and pet insurance products (FRN310635) and is registered in England and Wales to Greyfriars House, Greyfriars Road, Cardiff, South Wales, CF10 3AL, company number 03857130. Confused.com is a trading name of Inspop.com Ltd. 

2. LifeSearch Partners Limited (FRN656479), for the introduction of Pure Protection Contracts and Private Health Insurance, who are authorised and regulated by the FCA to provide advice and arrange Pure Protection Contracts and Private Health Insurance Contracts.  LifeSearch Partners Ltd is registered in England and Wales to 3000a Parkway, Whiteley, Hampshire, PO15 7FX, company number 03412386.

3. HUB Financial Solutions, for the introduction of equity release advice, who are authorised and regulated by the Financial Conduct Authority (‘FCA’) to provide advice and guidance on financial products for those who have retired or are approaching retirement (FCA Firm Reference Number: 455713). HUB Financial Solutions is registered in England and Wales to Enterprise House, Bancroft Road, Reigate, Surrey RH12 7RP, company number 05125701.

4. Alan Boswell Insurance Brokers Ltd (FRN 301), for the introduction of non-investment landlord insurances, who are authorised and regulated by the Financial Conduct Authority to provide advice and arrange insurance contracts. Alan Boswell insurance brokers Ltd is registered in England at Prospect House, Rouen Rd, Norwich NR1 1RE, company number 02591252.

Other financial services:

Mortgage service provided by London & Country Mortgages (L&C), Unit 26 (2.06), Newark Works, 2 Foundry Lane, Bath BA2 3GZ. London & Country are authorised and regulated by the Financial Conduct Authority (registered number: 143002). The FCA does not regulate most Buy to Let mortgages. Your home or property may be repossessed if you do not keep up repayments on your mortgage.

We do not make, nor do we seek to make, any recommendations or personalised advice on financial products or services that are regulated by the FCA, as we’re not regulated or authorised by the FCA to advise you in this way. In some cases, however, we have included links to regulated brands or providers with whom we have a commercial relationship and, if you choose to, you can buy a product from our commercial partners. 

If you go ahead and buy a product using our link, we will receive a commission to help fund our not-for-profit mission and our campaigns work as a champion for the UK consumer. Please note that a link alone does not constitute an endorsement by Which?.