’Competitive home insurance premiums are almost 17% below their level two years ago and are still falling,’ says director
Competitive home insurance premiums fell 4.4% year-on-year in September 2026, according to the latest market pricing data from Defaqto.
Prices continued to soften during the third quarter of 2026, falling 2.4% overall. This included reductions of 1% in July, 0.9% in August and 0.4% in September.
And the average of the five most competitive quoted premiums for combined buildings and contents insurance was also 16.9% lower than two years previously.
However, Defaqto said the slowing pace of reductions towards the end of the quarter could indicate that pricing is beginning to stabilise.
Claims pressure
Stephen Kennedy, director at Defaqto, said: “Competitive home insurance premiums are almost 17% below their level two years ago and are still falling.
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“That creates a difficult balance for insurers when inflationary pressures and uncertainty over claims costs remain.”
Kennedy highlighted weather-related claims, including flooding, storms and subsidence following hot and dry summers, as particular concerns for insurers.
The research also found significant pricing differences between individual providers.
Over the 12 months to September, movements ranged from a 20.2% reduction to a 12.1% increase.
Francis Luery, product manager at Defaqto, said the variation highlighted the importance of customers shopping around at renewal.
Luery said: “For customers, the variation reinforces the value of shopping around at renewal and comparing the cover, limits and excesses alongside the premium.
”For providers, it creates opportunities to attract business while increasing the importance of understanding their competitive position.”
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