By: 16 February 2023
Average price of home insurance falls to lowest since records began

The average price paid for home insurance last year fell to its lowest since 2012, according to the Association of British Insurers (ABI).

The trade association, which began collecting home insurance data in 2012 and now reveals in its Household Insurance Premium Tracker, reported an average price of £300 in 2022.

This represents a 6% decrease from 2021, for combined buildings and contents insurance. The average price for separate buildings (£228) and contents policies (£116) were also at an all-time low.

The reduction came despite rising subsidence claims, surging frozen pipe payouts and increasing costs for building materials and labour last year.

Storms Dudley, Eunice and Franklin in February 2022 led to insurers dealing with 170,000 claims for property damage, paying out £473 million to support affected customers, according to the ABI.

And a record-breaking summer heatwave saw several insurers report or predict a significant rise in subsidence claims, the full costs of which are likely to materialise during 2023.

The cold snap last December also saw several insurers reporting a surge in claims for damage caused by burst frozen pipes.

Laura Hughes, the ABI’s manager of general insurance, commented: “Last year was a stark reminder that the only thing predictable about the UK’s weather is that no one knows what it will do next.

“Insurers are always ready to support customers when the worst happens. Despite the amounts paid out last year, and a rise in the costs of building materials and labour, home insurers will continue to do all they can to offer competitive deals to customers.

“Insurers appreciate that these continue to be tough times for many households coping with the rising cost of living. Anyone concerned about being able to continue paying their home insurance premium should speak to their insurer about any alternative payment options that may be available.”

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