Home premiums fall – but warning issued after weather alert

The average cost of home insurance fell 13% year-on-year in September 2025, according to price comparison site Compare the Market.

The figures, released today (3 November 2025), revealed that prices dropped down from £226 per policy in 2024 to £197 in the latest period.

The biggest price falls were seen in the north east of England (15%), East Midlands (15%) and the north west of England, Scotland and West Midlands (all 14%).

By contrast, Northern Ireland was the only region to see premiums climb, reporting a 9% increase over the same period last year.

Weather warning

While consumers will welcome the price drops, the firm issued a warning to policyholders to ensure they have the right level of protection in their policies, given a warning from the Met Office that above average rain has been forecast across the rest of the year.

Homeowners living on or near floodplains are particularly at risk and should take advantage of the cheaper pricing if their policy does not currently match their risk profile.

Sam Wilson, head of commercial finance at Compare the Market, said: “It’s encouraging to see home insurance premiums falling. However, while lower costs should be welcome news for homeowners, it’s important not to focus on price alone.

“With forecasts of unsettled weather ahead, households should check that their policies offer the right levels of cover for their needs.

“It’s also a good idea to shop around and compare deals as they may get a better price on their premium. Taking a few minutes to review your cover and comparing them against different policies online could make a difference.”