Home insurance prices skyrocket by a record 40.6% in just one year

Home Insurance Price Trends
The average quoted price of home insurance saw a significant increase of 40.6% in the 12 months leading up to January, marking the highest annual rise since 2014. This rise surpasses previous records set in the last two quarters. Premiums mainly fell within the £150 to £199 range, with 29% of quotes in that bracket.

Potential Slowdown in Price Rises
Despite the steep increase, there are indications that price rises could be decelerating. In the three months up to January 2024, quoted premiums rose by 7.6%, slightly lower than the previous quarters. This slowdown can be attributed to the introduction of new and more competitive insurance policies.

Impact of Recent Storm Damage
Customers who have made claims, particularly for water-related damage, are likely to face additional premium hikes in the upcoming months due to recent storm damage, according to Consumer Intelligence.

Insight on Premium Increases
Customers who have claimed for different types of damage have seen varying increases in quoted prices. Notably, those with water-related damage claims experienced a rise of 49.1%. Meanwhile, customers with no claims saw an increase of 39.9%.

Factors Influencing Price Trends
The increase in new business quoted premiums for both buildings and contents insurance, up by 40.6%, has been driven by the launch of competitive products such as More Than Essentials, Esure Flex, and One Click, as highlighted by Matthew McMaster, Senior Insight Analyst at Consumer Intelligence.

Long-term View and Regional Differences
Overall, quoted premiums have surged by 53% since data collection began in 2014. All regions have experienced price hikes of around 40% in the past year, with varying increases in quoted prices over the last three months.

Age and Property Type
Quoted premiums for under-50s households rose slightly faster than for over-50s households. Additionally, properties of all ages saw an increase in quoted premiums, with homes built between 1970 and 1985 experiencing the highest rise.

Regional Price Index

Data from the Consumer Intelligence Home Insurance Price Index is utilized by various entities as a benchmark for consumer price changes. For more in-depth insights and to optimize your pricing strategy, download the Home Insurance Price Index.