Extreme weather conditions. Rising construction costs. Higher property prices. These are some of the factors that have contributed to an 8.5% increase in combined home insurance premiums in the UK. 

According to data¹ for the fourth quarter of 2024, the average cost for an annual buildings and contents policy rose to £231 a year – although there are significant regional variations. For example, the median cost for Greater London, the second most expensive location, came in at £336, while Scotland was closer to the national average at £228. The cheapest regions were the North East at £190 and the North West at £196. 

Material shortages, labour expenses and inflation rates have all played a part in driving up repair and rebuild costs for insurers, who have also seen a surge in claims. A record £886m² was paid out for domestic property claims by British insurers in the first quarter of 2025, a 20% increase on the same period last year, with adverse weather a major cause. 

Despite the uptick, there are ways to save on your home insurance: from taking out a combined policy and avoiding unnecessary add-ons to shopping around and paying annually. The premium you pay will also be influenced by factors closer to home: from bedroom numbers to burglar alarms. We can help you source the most suitable cover for your needs. 

Make sure you don’t invalidate your insurance by leaving a spare key where it can be easily found. Most policies only accept theft claims if there are signs of a forced entry. 

¹Go.Compare, 2025, ²ABI, 2025