’Home insurance premiums continued to rise in the first three months of the year,’ says director

Home insurance premiums rose by 31% over the last year amid rising costs of materials and labour needed for repairing and rebuilding damaged homes.

That was according to Compare the Market, which revealed that the average price to insure a home increased to £209 between January and March 2024, £53 higher than the same period last year.

The jump came due to a rise in premiums for previously flooded homes, with them increasing £103 year-on-year.

And during the first three months of 2024, properties that have previously flooded were on average £245 more expensive to insure than homes that have not had this issue.

The came following a series of storms last autumn, including those of Babet, Ciaran and Debi.

“Home insurance premiums continued to rise in the first three months of the year, pushing up expenses for homeowners across the UK,” Helen Phipps, director at Compare the Market, said.

”This may in part be due to the rising costs of materials and labour needed for repairing and rebuilding damaged homes. Figures from the ABI have revealed a jump in the value of claims being paid out by insurers, which rose by nearly 10% to £2.55bn in 2023.”

Regions

The data also showed that home insurance premiums have been rising across many regions in the UK. 

Homeowners in Northern Ireland saw the largest increases, with the cost of home insurance jumping by 53% year-on-year to £383.

Yorkshire and The Humber was the second-most expensive region for home insurance, where the average premium has reached £366.

This was followed by Greater London at £333, the South East at £233 and East Anglia at £229.

“As premiums continue to rise, homeowners should take steps to reduce costs where possible,” Phipps said.

”One of the best ways to try and save money is by comparing prices and types of cover.”

 

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