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Decrease in Average Home Insurance Premiums Despite Increase in Accidental Damage Claims

Peter, January 6, 2024March 7, 2024
  • The average buildings and contents policy now stands at £145

  • Londoners pay almost 50% more for their home insurance when compared against the UK average

  • Homeowners across the country have seen a 1.2% drop in average home insurance premiums thanks to a reduction in break-ins and water damage claims, resulting from the Government’s stay-at-home directive, analysis from data analytics expert Consumer Intelligence shows.

  • “No doubt, the current pandemic and resulting lockdown is responsible for these shifts, given there is a reduction in overall claims being made,” says John Blevins, Head of Product at Consumer Intelligence, the insurance research experts.

  • Blevins, however, has noticed that with more people at home for longer periods – working, home-schooling, doing DIY and even exercising – it has led to a rise in accidental damage claims.

  • “With any insurance, claims frequency and severity will dictate pricing movements and as the world shifts to slowly reducing Covid-19 restrictions, we will expect to see small shifts in pricing as a result,” says Blevins.

  • Age differences

  • Across the market, average overall premiums sit at £145, however younger homeowners continue to pay slightly more for their home insurance. The under-50s demographic, despite a reduction of 2.1% to their premiums over the last 12 months, still hand over, on average, £153 for an annual buildings and contents policy.

  • It’s just £132 for an average policy for the over-50s. Our older grouping saw premiums fall at the slower rate of 1.6% over the same 12-month period.

  • Into the regions

  • Londoners (£215) are now paying almost 50% more for their home insurance when compared against the UK average (£145). Homeowners in the North East fork out just £129 for an annual policy, with the South West (£130) and West Midlands (£132) also benefiting from cheaper premiums. The South East (£147) was the only other UK region where their homeowners typically paid more than the UK average for their home insurance.

  • Property age

  • Older homes continue to be expensive to insure as they tend to be more susceptible to issues such as fire damage or roof problems. Our oldest cohort, Victorian-era properties (built between 1850 and 1895), attracted the highest average premiums at £174 for an annual policy. While those built in the 21st century were the cheapest to insure at just £131 for an annual policy.

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