Context
Despite a year of turbulent weather in 2022 causing damage to many homes, the average price paid for home insurance fell to its lowest since the ABI started collecting the data back in 2012, as householders got the best deals in a very competitive market according to the ABI’s latest Household Insurance Premium Tracker.
Key points to note
For 2022, the average price paid for home insurance (combined buildings and contents) was £300 down 6% on 2021 and the cheapest since the ABI started collecting data in 2012. The average price for separate buildings (£228) and contents policies (£116) were also at an all-time low.
However, a rise in subsidence claims, a surge in frozen pipe payouts and the rising costs of building materials and labour costs could put pressure on premiums in 2023.
In 2022, the average price to renew a combined buildings and contents home insurance policy fell by 10% on the previous year’s average renewal of £316 reflecting, in part, the impact of the FCA’s new rules on the pricing of home and motor insurance.
Next actions
None – for information and awareness.