A recent article from Which? highlights the fact that the cost of home insurance dropped by 1% in the last quarter of 2024. However, compared to prices in 2023, home insurance policies remain up by 11%.
So, what’s behind the rising cost of home insurance policies?
The Impact of Inflation
One of the primary reasons for price increases is inflation. Rising costs for materials and labor mean that when claims are made, insurers are paying more to restore properties. Additionally, the frequency and severity of natural disasters such as floods has surged, leading to more claims and, consequently, higher premiums.
Regional Home Insurance Variations
But it’s not just inflation and disasters at play. Regional variations in premiums can significantly affect how much you pay. For instance, homes located in flood-prone areas or regions with high crime rates often see steeper premiums. Conversely, areas with lower risks may enjoy more favorable rates.
Property Type
The type of property you live in will also affect the price of your home insurance policy. Older homes, which may require more maintenance and repairs, often come with higher premiums compared to new constructions. Insurers consider the age and condition of your property when determining rates, so if you’re living in an older home, be prepared for a potentially higher bill.
Saving on Home Insurance
To keep costs as low as possible, follow our tips below
- Shop Around: Don’t settle for the first quote you receive. Compare rates from different providers to find the best deal.
- Bundle Policies: Many insurers offer discounts if you bundle home insurance with other types of coverage, like auto insurance.
- Increase Your Excess: A higher excess can lower your premium, but make sure you can afford the out-of-pocket expense in case of a claim.
- Improve Home Security: Installing security systems or smoke detectors can also lead to discounts on your premiums.
Get Expert Advice
As an insurance broker, The Bateman Group has access to the entire market and we can match you with the right provider. Speak to our team by calling 01926 495 113.
