’Insurers appreciate these continue to be tough times for many households,’ says general insurance manager
The average price of combined home buildings and contents insurance rose by less than the rate of inflation over the last year.
That was according to the Association of British Insurers’ (ABI) latest Home Insurance Premium Tracker, which looked at the price consumers pay for their cover rather than the prices they are quoted.
Its findings, which were released today (18 May 2023), found that during Q1 2023, the cost of consumers’ combined buildings and content policy increased by 3% compared to Q4 2022 – equating to a total price of £315.
This was also a 6% rise over the last year from the first quarter of 2022.
Meanwhile, the average cost of a buildings only policy increased by 1% to £236 in Q1 2023 – meaning it rose by 5% since Q1 2022.
Contents only cover, on the other hand, fell by less than 1% to £117 in the first quarter of this year from Q4 2022 – since Q1 2022, it has risen by 1%.
Laura Hughes, general insurance manager at the ABI, said the rise in the average combined buildings and contents premium over the last year remains under the inflation rate, “despite the above inflation rises in the cost of many building materials”.
“Insurers appreciate these continue to be tough times for many households coping with the rising cost of living,” she added.
Weather
Considering weather, insurers dealt with 170,000 claims for property damage following storms Dudley, Eunice and Franklin in February 2022.
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Insurers were then hit with a surge of claims later that year following a cold snap in December.
Firms also expect to pay £219m in subsidence claims after experiencing record-breaking temperatures during the summer of last year.
“Last year’s storms and the surge in subsidence claims following the summer heatwave were a dramatic reminder of the importance of home insurance,” Hughes added.
“During these challenging times, anyone worried about being able to continue paying their home insurance should speak to their insurer about any alternative payment options that may be available.”
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