5th October, 2021

UK home insurance premiums have decreased by 5.6 per cent in the last year and by 6.4 per cent since hitting a peak in June 2020, according to a new report

Data analytics firm *Consumer Intelligence expects home insurance prices to go up again soon, as the country moves towards out of lockdown, but predicts any increases will be relatively low because the market is so competitive.

Younger homeowners continue to pay slightly more for home cover than their elders, but the gap is shrinking.

A homeowner under age 50 pays an average of £151 for an annual buildings and contents policy, while over-50s pay £134.

Across the regions, London has the most expensive average home insurance premium at £202.
Only the South East (£154) and Yorkshire and the Humber (£150) have premiums higher than the national average of £144.

The North East (£113) remains the region with the cheapest premiums, followed by the East Midlands (£124) and the South West (£130).

Premiums fell across all regions, with the largest decreases in Yorkshire and the Humber (-7.9 per cent).

Older properties remained more expensive to insure than newer ones, due to the higher cost of claims made by their owners.

Roofing, plumbing and wiring are more likely to develop faults, the report claims, and replacement materials may be expensive to source.

Homes built in the 19th century/Victorian era were the most expensive, typically costing £169 a year to insure.

Meanwhile, properties built since the turn of the century were the cheapest at £133.

Reductions were seen across all property age segments, and Consumer Intelligence notes that the largest decrease in premiums for properties built between 1940 and 1955 (-7.4 per cent) and between 1910 and 1925 (-7.0 per cent).

Here at One Call Insurance we’ve also seen price decrease across our panel of insurance providers with the average premium dropping from £202 in 2020, to £178 in 2021.

As an insurance broker, we always do our best to find our new and existing customers the best policy for the best price – so any reductions in premium - for whatever reason are welcomed by ourselves on behalf of our customers.

Of course a price drop isn’t guaranteed for everyone due to individual circumstances i.e. location, property type/age and claims history for example. Having said that it is still positive news for the industry as a whole.

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** Please note that the above information has been gathered through secondary research. The information provided is not based on our opinion. You should seek further guidance and information before making an informed decision.