Home insurance premiums rising at record pace

The average quoted price of home insurance jumped by 40.6% in the 12 months to January 2024, according to new data from Consumer Intelligence.

The financial services insights provider highlighted this was the highest annual increase on record, beating the previous all-time high of 36.1% recorded in the year to October 2023.

It means that in total, quoted premiums have surged by 53% since Consumer Intelligence started data collection in February 2014.

According to the latest figures, the majority of insurance premiums were quoted between £150 and £199, with 29% of quotes falling within this range.

Matthew McMaster, senior insight analyst at Consumer Intelligence, said: “This is the largest yearly increase we have seen since our tracking began in 2014.

“Over the last 12 months, new business quoted premiums for buildings and contents insurance have increased by 40.6%.”

Slowing down

However, there are signs that price rises could be slowing.

In the three months leading up to January 2024, quoted premiums experienced a 7.6% rise, a slightly lower rate than the 8.5% and 9.9% increases observed in the previous two quarters.

This can be attributed, in part, to the introduction of new, more competitive insurance policies, explained Consumer Intelligence.

“One driver in the slowing of inflation is the launch of a number of products that have become increasingly more competitive,” said McMaster.

Claims

However, Consumer Intelligence warned that customers who have filed claims may experience further premium increases in the upcoming months due to the impact of storms.

During the 12 months to January, customers making claims for water-related damage saw quoted price hikes of 49.1%.

Similarly, individuals with buildings claims experienced increases of 47.6% and those with damage-related claims saw a rise of 47.1%.

In contrast, customers with no claims encountered increases of 39.9%.