The cost of home insurance in the UK rose by 21% year-on-year between July and September 2024, according to new research from Compare the Market.
The average home insurance premium increased from £187 in the third quarter of 2023 to £227 during the same period in 2024. While the latest increase is significant, it represents a deceleration in comparison to the period from April to June this year, when the average cost of home insurance grew by 32% year-on-year.
REGIONS
Home insurance premiums increased most significantly for homeowners in Northern Ireland between July and September, climbing by 45% year-on-year to £450 on average. After Northern Ireland, the most significant increases were seen in East Anglia (24%), Greater London (24%), Scotland (25%), and the South East (25%).
Alongside those in Northern Ireland, homeowners in Yorkshire and the Humber (£384), Greater London (£361), and the South East (£254) had some of the most expensive home insurance bills in the country.
The year-on-year price increases reported across all regions from July to September represent a deceleration in comparison to the previous quarter. Between April and June, premiums grew year-on-year by 62% in Northern Ireland, 39% in Greater London, 36% in the South East, 35% in East Anglia, and 35% in Scotland.
| Average home insurance premium by region | ||||
| Region | Q3 2023 average premium | Q3 2024 average premium | Q3 2024 increase | Q2 2024 increase |
| East Anglia | £201 | £250 | £49 (24%) | £64 (35%) |
| East Midlands | £173 | £205 | £32 (18%) | £45 (28%) |
| East of England | £162 | £185 | £23 (14%) | £34 (23%) |
| Greater London | £292 | £361 | £69 (24%) | £101 (39%) |
| London | £200 | £246 | £46 (23%) | £50 (26%) |
| North East | £155 | £180 | £25 (16%) | £38 (27%) |
| North West | £170 | £203 | £33 (19%) | £47 (30%) |
| Northern Ireland | £310 | £450 | £140 (45%) | £165 (62%) |
| Scotland | £188 | £235 | £47 (25%) | £59 (35%) |
| South East | £204 | £254 | £50 (25%) | £66 (36%) |
| South West | £178 | £214 | £36 (20%) | £50 (31%) |
| Wales | £174 | £209 | £35 (20%) | £48 (30%) |
| West Midlands | £170 | £198 | £28 (16%) | £40 (25%) |
| Yorkshire and the Humber | £331 | £384 | £53 (16%) | £78 (25%) |
PROPERTY TYPE
Home insurance costs for bedsits increased most significantly between July and September, with premiums climbing by 50% year-on-year. Insurance costs for detached bungalows (32%), ground floor flats (31%), and top floor flats (28%) also grew considerably during the third quarter.
Bedsits were also the most expensive property type to insure of those included in Compare the Market’s study, costing homeowners £448 on average. Detached houses were the second most expensive property type to insure between July and September (£275), followed by ground floor flats (£264), and detached bungalows (£241).
Year-on-year increases have also slowed for all property types, aside from bedsits, in comparison to the second quarter. From April to June this year, premiums climbed year-on-year by 38% for detached bungalows, 42% for ground floor flats, and 32% for top floor flats.
| Average home insurance premium by property type | ||||
| Property type | Q3 2023 average premium | Q3 2024 average premium | Q3 2024 increase | Q2 2024 increase |
| Bedsit | £299 | £448 | £149 (50%) | £106 (26%) |
| Detached bungalow | £183 | £241 | £58 (32%) | £65 (38%) |
| Detached house | £222 | £275 | £53 (24%) | £69 (34%) |
| End terraced bungalow | £153 | £187 | £34 (22%) | £37 (27%) |
| End terraced house | £168 | £202 | £34 (20%) | £47 (31%) |
| Ground floor flat | £202 | £264 | £62 (31%) | £74 (42%) |
| Mid terraced house | £167 | £200 | £33 (20%) | £44 (29%) |
| Mid-level floor flat | £193 | £245 | £52 (27%) | £60 (34%) |
| Semi-detached bungalow | £153 | £190 | £37 (24%) | £44 (31%) |
| Semi-detached house | £175 | £206 | £31 (18%) | £46 (29%) |
| Top floor flat | £186 | £239 | £53 (28%) | £53 (32%) |
PREVIOUSLY FLOODED HOMES
Homeowners with properties that have been previously flooded continued to see their insurance premiums rise at an accelerating pace between July and September. The average cost of insuring a home that has previously flooded in the third quarter of this year was £485, a year-on-year increase of 30% and a sharper jump than the 27% change reported in the second quarter.
| Average home insurance premiums for previously flooded homes | |
| Year | Average premium |
| Q2 2023 (April to June) | £373 |
| Q2 2024 (April to June) | £473 |
| Q3 2023 (July to September) | £372 |
| Q3 2024 (July to September) | £485 |
Helen Phipps, director at Compare the Market, said: “It’s positive to see that home insurance costs are now rising at a slower rate, which will be good news to many homeowners.
“However, compared to last year, premiums are still expensive which is difficult for lots of people who are also faced with other high household bills.
“People with homes that have been previously flooded are particularly vulnerable, with quarterly price rises not yet showing signs of slowing. This reflects a long-term trend of increasing home insurance claims for weather-related damage, which reached a record £573 million last year, according to the Association of British Insurers.
“Fortunately, there are some proactive steps that homeowners can take to try and find more affordable home insurance. For example, make sure you shop around first to see what home insurance deals are available before you renew with your current provider. Depending on your provider, combining your contents and buildings policy could mean you get a discount.
“For those living in areas at risk of flooding, the government’s Flood Re scheme could also help you to save money while securing the cover that you need. Lots of insurance providers take part in this joint initiative with the UK Government in order to provide more affordable insurance to homes at risk of flooding.”
