Home insurance prices drop 3.9% in quarter to continue year-long fall

Average quoted prices for home insurance policies have fallen 3.9% in the last three months, continuing a downwards trend that has seen them drop 7.9% over the past year.

This is according to market research firm Consumer Intelligence’s latest Home Insurance Price Index, released yesterday (4 August 2025), which also revealed the price falls had taken the modal home insurance price bracket to £150 to £199.

The drops represent only a brief deviation from a longer term trend of policy price rises that have seen quoted premiums rise 54.2% since 2014.

The North East of England, Wales and the West Midlands saw the biggest yearly drops, falling 10.5%, 10.4% and 10.4% respectively, while the South West saw the smallest year-on-year drop at just 2%.

Age variations

Variation was also seen in quoted prices for homes of differing ages, with the largest drop of 9.5% seen in homes built between 1925 and 1940 and the smallest fall of 4.6% seen in homes built between 1850 and 1895.

Laura Vas, senior insight analyst at Consumer Intelligence, said: “Along with combined policies, some firms have been reducing prices significantly in the contents-only market. However, their buildings-only premiums did not move as much. This indicates buildings claims may still be a challenge for insurers.

“The market saw its first new product on price comparison websites since January, with Sheilas’ Wheels Essentials launching in June. There is a greater array of choice for consumers – 75% of the best prices in the market came from nine brands in June 2025, up from six in the previous year.”