Home insurance cost soars more than 25 percent in year
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The average price of a home insurance premium including buildings and contents was £212 in July, up from £168 the year before, according to data analytics firm Consumer Intelligence.
It fears premiums could be heading higher still as quotes surged 9.9% in the three months to July - the highest spike since it started recording costs in 2014.
The £212 estimate was based on prices quoted on comparison websites.
But Consumer Intelligence's figure is actually much lower than quotes we have found during our research at NimbleFins, which found the average cost of cheap home insurance was £294 a year.
It is not known which variables were inputted by CI when doing its research, but NimbleFins looks at the five cheapest quotes for the typical British home including:
- £50,000 of contents cover to protect personal possessions,
- Accidental damage cover,
- Legal cover,
- Home emergency cover.
Accidental damage, legal cover and home emergency cover are all popular optional add-ons in most cases, which may have raised our figures, but perhaps also means it is more realistic for a typical family.
A spokesperson for the Association of British Insurers (ABI) said: "Last year's extreme weather and the surge in subsidence claims was a dramatic reminder of the importance of insurance, and insurers paid out £2.9 billion to help customers cope with unexpected events, such as storm damage.
"If you're worried about being able to afford your home insurance, speak to your insurer about any alternative payment options that may be available."
What impacts home insurance cost?
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Regions
London was the region hardest hit by home insurance price rises, according to CI, https://www.consumerintelligence.com/articles/quoted-home-insurance-prices-surge-a-record-25.7-in-a-year with quotes 49% higher than the UK average at £316 a year. However, those in the capital saw the lowest increase in quoted prices at 6.4%.
The south east is the only other region to have higher than average premiums at £227.
All regions have seen quotes rise by more than 20% in the last year, but the north east is the cheapest place to get home insurance at £184, according to CI.
Age
Older households are quoted less for their home insurance, with over-50s offered premiums for £199, compared with £222 for under-50s.
Property age
The oldest properties attracted the highest quotes, but there isn't a straightforward correlation between property age and home insurance costs.
While Victorian-era homes built between 1850 and 1895 had the highest quotes at £279, homes built between 1940 and 1955 had the lowest at £194.
Properties built between 1985 and 2000 were quoted £197, and those built from 2000 were quoted £198.
Other factors affecting your home insurance
Your rebuild cost, excess, no claims bonus, type of property and the type of security you have at your home can all affect the cost of home insurance.
Read our guide on how to save money on your home insurance, here.
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