According to experts, the average interest rate on home insurance has increased by 25.7% annually
According to an index, the average quoted price for home contents insurance has increased by around a quarter (25.7%) annually.
Data analytics firm Consumer Intelligence, which compiled the report, said this was the biggest jump it had seen in records since 2014.
The average premium for buildings and contents insurance was £212 in July, up from £168 in July 2022. The figures have been rounded.
People who have made claims are likely to feel the crisis even more acutely
Across the UK, people in London continue to pay the highest typical building and contents insurance premiums at £316, with the North East being the cheapest region with an average quoted price of £184.
When conducting the research, the company takes into account the prices stated on price comparison portals.
Georgia Day, senior insight analyst at Consumer Intelligence, said: “People who have filed claims are likely to feel the strain even more, as our data shows the highest increases among customers who have filed a water escape claim.”
Researchers found that older homeowners received lower quotes for their home insurance. The average premium for over-50s is £199, compared to £222 for under-50s.
For those under 50, listing prices rose slightly faster at 26.3% over the last 12 months, compared to 25.0% for those over 50.
Insurers recognize that these remain difficult times for many households due to the rising cost of living and continue to do all they can to keep premiums as competitive as possible
Older properties continue to attract the highest asking premiums, with Victorian-era homes built between 1850 and 1895 recording an average cost of £279 for shared home insurance.
Average premiums for houses built between 1940 and 1955 are lowest at £194.
A spokesman for the Association of British Insurers (ABI) said: “Insurers recognize that these continue to be difficult times for many households due to the rising cost of living and are continuing to do everything they can to keep premiums as competitive as possible possible.”
“Last year’s extreme weather and rise in subsidence claims dramatically demonstrated the importance of insurance, with insurers paying out £2.9 billion to help customers cope with unexpected events such as storm damage .”
The spokesperson added: “If you are concerned about whether you can afford your home insurance, speak to your insurer about possible alternative payment options.”
The ABI said it will soon be releasing its own home insurance premium tracker, which will look at the price consumers pay for their insurance cover, rather than the price they quote.
According to Consumer Intelligence, here are the price increases for deals over the past year, followed by the average premium. The company takes an average of the cheapest premiums to indicate the prices people are likely to pay:
London, 27.8%, £316
South East, 28.4%, £227
East of England, 26.4%, £209
Yorkshire and Humber, 26.2%, £202
South West, 24.8%, £195
Scotland, 25.0%, £194
West Midlands, 22.2%, £194
Wales, 26.5%, £193
East Midlands, 24.4%, £191
North West, 25.3%, £190
North East, 24.3%, £184
https://www.standard.co.uk/business/money/average-home-insurance-quote-has-jumped-by-25-7-annually-say-experts-b1105774.html According to experts, the average interest rate on home insurance has increased by 25.7% annually
