Quoted home insurance premiums have risen by 42.2% since February 2014, but around 33.8% of the total increase has happened in 2023.
In the year to October 2023, water-related damage claims have seen quoted prices rise by 42.8%, while those with buildings claims have seen increases of 40.7 and costs for damage-related claims have increased by 39.5%.
What are the average home insurance costs by region?
Londoners have the highest cost for home insurance, with an average premium costing £342 in October 2023. They are followed by those in the South East, with an average cost of £246, and residents in the East of England, with an average cost of £228.
Meanwhile, those in the North East have the cheapest home insurance, with an average cost of £197. North West residents also pay less than the national average for home insurance, with an average price of £204, as do those in the East Midlands, with an average price of £208.
All regions of the UK have since a year-on-year increase of more than 30% in home insurance, but the South East has seen average prices rise the most, with an increase of 38.5%, followed by Yorkshire and The Humber with a year-on-year increase of 38.1%.
How many home insurance policies are in issue?
In 2024, it is projected that there will be 34.67 million property insurance policies in issue, down slightly from 34.76 million in 2023 and down from 35.64 million in 2018.
How much does the UK pay for home insurance?
In 2022, UK households spent over £2 billion on home insurance. This is similar to 2021 and an increase from 2020, when UK residents spent £1.48 billion on home insurance.
The total amount spent on home insurance reached a high in 2014 when UK households spent a whopping £2.85 billion, 34% higher than in 2022.
Home insurance payouts were worth £782 million, up 11% in the second quarter of 2022. This is the equivalent of £8.6 million paid every day to help households cope with the unexpected.
In 2022, for every £1 property insurers received in home insurance premiums, they paid out £1.22 in claims and expenses.
What is the average value of a home insurance claim?
The average value of a home insurance claim paid in the second quarter of 2023 was £4,300, up 24% from around £3,400 in the same period in 2022.
The UK home insurance market
The UK household insurance market is expected to grow by 2.9% in 2023, following a 3.3% decline in 2022.
The gross written premium of the UK home insurance market in 2022 was £5.97 billion. This is the total amount insurers collect from customers for insurance policies.
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Danny is a publisher at Finder specialising in insurance and investing. He previously worked at the global insurer Aon and has appeared in national media giving advice on insurance. Danny holds a BA in International Business from the University of Plymouth and has undying loyalty to his average-poor football team, Portsmouth FC. See full bio
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Danny has written 350 Finder guides across topics including:
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