Context
The most recent data from the ABI shows the average home insurance (combined buildings & contents) premium rose 3% in the first quarter of 2024, following a severe winter for weather damage. to £375. Buildings-only cover rose 5% to £298 and contents-only cover remained static at £132.
Key points to note and next actions
The 3% quarterly rise is slightly less than Q4 2023 (+4%), but year-on-year (Q1 2023 to Q1 2024) home insurance premiums have increased by 19%. However, in real terms, prices sit below peaks seen in Q1 2016 when the average home insurance policy cost £419.
This increase in premiums mean that the average cost of a combined buildings & contents policy rose to £375, with buildings-only cover rising 5% to £298 and contents-only cover remaining static at £132.
2023 was a year marked by bad weather, with the worst weather-related home insurance claims on record at £573m. Most of this was caused by the succession of storms Babet, Ciaran and Debi, which struck in the final three months of last year and caused £352m of damage to homes. The largest element of weather-related damage is caused by flooding. The ABI has repeatedly called on the government to ensure that flood defence and maintenance receives at least £1bn a year to keep pace with climate change.