Home Insurance Premiums Surge

The recent increase in home insurance premiums reflects a significant change due to the new pricing practice implemented by the FCA.

Home Insurance Price Trends

Following a sudden spike in home insurance costs at the beginning of the year, recent analysis from Consumer Intelligence suggests that premiums are stabilizing. The latest data from the home insurance price index shows a 2.3% rise in average premiums over the last three months.

Impact of New Legislation

The introduction of the General Insurance Pricing Practice (GIPP) legislation in January 2022 aimed to address the issue of "price walking," resulting in a substantial one-month increase in home insurance premiums. This legislation prohibits insurers from offering significantly lower premiums to new customers, impacting premiums across the board.

Regional Disparities

London residents continue to pay the highest premiums for home insurance, with an average cost of £212 for a buildings and contents policy. In contrast, the North East is now the most affordable region for home insurance, with an average cost of £130.

Age and Property Factors

Households under 50 tend to pay slightly more for home insurance, with premiums averaging £160, compared to £150 for over-50s. Property age also plays a role in premium costs, with Victorian-era homes seeing the highest increases in premiums over the last year.

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