Quoted home insurance prices surge a record 41.6% in a year

• And the 10.3% rise in the past three months is the highest for 10 years
• Quoted prices rise the most in London at 49.9% and the least in the North West at 37.6%
  

The average quoted price of home insurance rose by 41.6% in the 12 months to April – the highest annual increase since Consumer Intelligence began tracking prices in 2014, the latest Consumer Intelligence Home Insurance Price Index ¹ shows.  

There is little evidence of a slowdown either. The past three months saw a 10.3% increase in quoted premiums for buildings and contents insurance, which was the biggest quarterly increase for 10 years. 

Premiums have most commonly been quoted between £150 and £199. 24% of quotes fell within that range, Consumer Intelligence’s April 2024 data shows. 

Customers who have made claims could see additional increases in the coming months, Consumer Intelligence warns, with those making theft claims within the last 5 years, experiencing increases in quoted premiums of 13.8% in the past three months. 

In the 12 months to April, some of the largest increases were seen by customers with buildings claims (50.3%) and water-related damage (49.8%). Those with general damage claims saw premiums rise 46.4%, and those who had suffered a theft saw inflation of 43.7%. By comparison, those with no claims saw slightly lower increases of 40.9%. 

“The increase in building and contents insurance new business quoted premiums is the largest yearly increase we have seen since tracking began in 2014.  

“The market saw inflation during each of the last 12 months. The last three months was the highest recorded in the last 10 years, exceeding the 10% seen in Q3 2023,” says Matthew McMaster, Senior Insight Analyst at Consumer Intelligence.  

Long-term view  

Overall, quoted premiums have now risen by 68.8% since Consumer Intelligence first started collecting data in February 2014.  

Into the regions  

All regions have seen increases in quoted premiums over the past 12 months, ranging from 49.9% in London to 37.6% in the North West. 

Increases in quoted prices over the past three months ranged from 7.4% in the West Midlands to 14.5% in London. 

Age differences  

Quoted premiums for over-50s households rose slightly faster than for under-50s households, at 42.4% compared with 41.0%. 

This trend has continued over the past three months. Quoted premiums increased 11.3% for over-50s, versus 9.7% for under-50s. 

Property age  

Properties of all ages saw big increases in quoted premiums in the past year. This ranged from 46.4% for homes built between 1910 and 1925, which was the highest, to 39.1% for homes built between 1940 and 1955, which was the lowest. 

Quoted premiums rose across the board for properties of all ages in the past three months ranging from 12.2% for houses built from 1895 to 1910, to 9.0% for those built between 1985 and 2000. 

Data from the Consumer Intelligence Home Insurance Price Index is used by the Office for National Statistics, regulators, and insurance providers as the definitive benchmark of how price is changing for consumers.

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