Home insurance rates decrease by 6.4% from their highest point in June 2020.

Home Insurance Premium Trends in the UK

Insurance premiums for UK homeowners have fallen by 5.6% in the last 12 months and 6.4% since their peak in June 2020 due to the impact of COVID-19. As restrictions ease and more people return to work, prices are expected to increase slightly. The average cost of a buildings and contents policy now stands at £144.

Market Analysis and Expectations

Consumer Intelligence, a data analytics expert, conducted an analysis revealing the decrease in insurance premiums. While the company anticipates a rise in premiums as the country reopens, the competitive nature of the home insurance market is likely to mitigate significant increases.

Demographic and Regional Variances

Younger homeowners typically pay slightly more for insurance compared to older age groups, although the gap is narrowing. In terms of regions, London remains the most expensive area for home insurance at £202 annually, followed by the South East and Yorkshire and the Humber.

Property Age Impacts Premiums

Older homes tend to have higher insurance premiums due to the likelihood of costly claims related to maintenance issues. Properties built in the 19th century attract the highest premiums, while newer properties are cheaper to insure. Across different age segments, reductions in premiums have been observed in the past year.

Regional Premium Comparison

The table below displays the average premiums and changes in prices across different regions in Great Britain:

For more detailed insights and strategies for optimizing pricing, you can download the Home Insurance Price Index provided by Consumer Intelligence.