Home insurance prices across the country have risen by over a quarter (27%) in the last three years, according toresearch based on more than seven years of data and millions of home insurance customer quotes.
The data relating to combined contents and building home insurance costs shows a hike in price from £113.30 in the first quarter of 2017 to £143.73 in the same period this year. However, despite the rise in price, the trend also indicates that the year-on-year increase is slowing following an 8.5% rise in the first quarter of 2018, 14.35% in the same period in 2019 and 2.58% this year, which is good news for homeowners.
Northern Ireland residents saw a country-high 11% jump in the cost of their home insurance in the first quarter of 2020 compared to the same time in 2019. However, London remains top of the table when it comes to the highest costs at £204.78 – 6% higher than the same period last year. Residents in the capital pay nearly £60 more than the national average (£144) to insure their homes against loss, theft or damage.
Analysing the most recent figures, there has only been a 1% increase when comparing the averages for April 2020 (£147) and April 2019 (£140.39).
Kate Devine, Head of Home Insurance at MoneySuperMarket, commented: “It’s reassuring to see that the yearly rise in home insurance costs has slowed to less than 3% at the beginning of 2020. However, some areas of the country do seem to be seeing increases at a higher rate than the average.
“The COVID-19 lockdown will likely have had an impact on home insurance prices this year. In the short term, this may mean that the difficulty in hiring professional tradespeople could heighten the risk of accidental DIY damage and result in higher claims, but also that the lower risk of burglary due to more people staying home could be a factor.
“The best way to ensure home insurance costs are kept manageable is to shop around and make sure that you’re on the best deal for you. Visit the MoneySuperMarket website to compare the best deals and you can save up to 44% on your home insurance1.”
To find out more and to discover how home insurance costs have changed in your area, visit the MoneySuperMarket website at: https://www.moneysupermarket.com/home-insurance/price-comparison-index/
As many people within the UK insurance sector know, the costs of Buildings and Contents cover in the UK is cheap, even with a price rise that took the average quote to say £200 a year. The average asset value of a new car is £20,000 but costs £700 a year to insure. Meanwhile, a typical UK semi is probably worth around £220,000 on Zoopla, and that takes no account of the actual rebuild costs following a fire – which may require the house next door to be demolished and rebuilt. So an asset that is worth say £350,000 is covered – and everything in it – for £145. What in the name of Lorraine Kelly’s tax code is that all about?
We are currently enjoying a superdry Spring, which is wonderful for BBQs but may yet provide ground conditions ideal for subsidence and heave, which again, have a serious impact on house insurance claims. So on balance, the industry does need to raise premium costs across the board.
The insurance sector also needs to tell a better story on Contents cover too – many Brits are now renting for life, whether by choice or priced out by local property values. To persuade people to cover the things they love, as well as the people they love, is a difficult thing sometimes. But it is the answer to the ever shrinking Contents cover market.
Use celebs, use social and shopping channels to reach customers, sell app-based PAYG cover on phones, trainers, watches, game consoles, bikes etc as people buy them – the point of sale is the apex of love for any new item. After that, it fades in the memory.