Home insurance premiums are becoming more expensive as conditions such as extreme weather are pushing the prices up.

Figures released by Compare the Market showed that from January to March this year home insurance costs rose by a huge 31%.

It was found that the average combined building and contents policy climbed up to £209 in the first quarter for this year, a leap of £53 compared to the same period for last year.

One of the major triggers for the prices spiralling upwards was the unsettled weather that the UK faced last autumn from storms Babet, Ciaran and Debi.

This led to weather related claims reaching an eye watering £573 million, which is the highest on record.

Most of the payouts were for flooding, followed by the costs of burst pipes.

Other figures revealed by the Association of British Insurers (ABI) would support what was found by the comparison website.

Year-on-year ABI data revealed that home insurance premiums rose by 19%, comparing the first three months of this year to last year.

Again the storms of last autumn were the main reason for the increases, and caused £352 million of damage to homes.

 

Bedsits are the most expensive to insure

Compare the Market said that bedsits were the most priciest type of property to insure for the first three months of this year.

The average cost of covering a bedsit was £423, which also saw the largest annual increase in premiums, rising by a massive 41% from £301 in 2023.

Flats were the second most expensive property type to insure, with an average cost of £221 which was an annual increase of 36%.

While bungalows were found to be the cheapest to cover, with the average price of a policy £199 for the first quarter of this year, but those living in bungalows have still not escaped the premium rises as they have increased by 30%.

Regional disparities were also found, with Northern Ireland the most expensive area for home insurance with an average price of £383, while the North East was the cheapest with a £169 average premium.

 

 

How to cut the cost of home insurance

The first thing to do is shop around and compare the quotes that you receive from different insurance companies.

You can also contact an insurance broker directly through the British Insurance Brokers’ Association, or use a price comparison website such as Compare the Market.

Also, don’t just accept your current insurance provider’s renewal quote, make sure that you look around for the best deal each time your policy is up for renewal.

Do not pay for any unnecessary extras, as your insurer could offer you additional cover that you might not have recognised, such as for accidental damage.

It’s more than likely that your standard policy will cover everything that you need.

While it is not necessary to buy building and contents insurance from the same provider, some companies will offer a discount if you take out two premiums together.

Yet it can also work out cheaper to buy different polices from separate companies, so again it is best to shop around and compare costs.

You could also look to upscale the security in your home, as many insurers do offer discounts to reward efforts of increasing safety.

The devices that you could install include burglar and smoke alarms, and high quality door and window locks would impress insurers.

Potentially your insurance provider could reduce the cost of premiums if you agree to pay higher excess, which is the first amount of any claim that you must pay.

Rather than pay for your premiums on a monthly basis, you could pay for them in one whole go at the beginning of your policy period, this could qualify you for a discount.

It’s common for insurers to offer discounts if a customer has not claimed anything on their insurance over a period of time, so it important to maintain your no claims discount.

To increase your chances of not having to make a claim, you can take preventative measures such as insulating your pipes and water tanks to prevent freezing in cold weather.

Plus you can install proper security devices to further avoid having to make a claim.

Finally, make sure that you spend time working out exactly how much that your possessions are worth.

If you overestimate the value of your possessions then your premium will be higher than what you should pay.

While if you underestimate this figure you will not be fully covered for a claim.