Home insurance premiums rise 10% in a year to £329 – are prices set to go even higher?

Homeowners are weathering a 10 per cent hike to their home insurance premiums – with further increases likely. 

The average buildings and contents insurance premium rose 10 per cent in a year to £329 for the second quarter of 2023, according to the Association of British Insurers  trade body.

The trade body said home insurers are now paying out around £8.6million every day in claims. The typical claim was £4,300 in the period, a rise of 24 per cent.

The increase has been partly driven by a rise in subsidence claims following last summer’s record-breaking heatwave, which have taken time to investigate and settle.

Subsidence payouts were £54million for the period, up 21 per cent on the £45million paid in Q2 2022. 

Around £782million was paid out in fire, theft, weather, escape of water, subsidence and accidental damage claims.

ABI director of general insurance policy Mervyn Skeet said: ‘Home insurance continues to do what it says on the tin – support customers when the worst happens. 

‘Not only being the roof over their heads and the family home, for most people their house is their most valuable asset which, without the protection of home insurance, could be at risk. 

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Source of data and images: dailymail

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