Home insurance premiums surge after bad weather strikes in Q1 2024

Home insurance premiums have seen their highest annual surge in five years, new figures have revealed.

According to Pearson Ham, the average price of such policies was recorded at £400 in Q1 2024, 10% higher than the previous quarter.

The figure is also an increase of almost 41% compared to a year ago, which the pricing specialist said was the “highest escalation” in pricing since 2019.

Prices rose in Q1 2024 due to bad weather hitting the UK – Storm Henk, for example, left homes and roads flooded at the start of January.

Larger properties bore the brunt of rising premiums, seeing a 43% rise over the past year, whereas flats experienced a comparatively lower inflation rate of 37%.

Stephen Kennedy, director at Person Ham, said: “The adverse weather conditions experienced in the first quarter caused claims to escalate and for home insurance premiums to surge, compounded by a substantial hike in building materials and labour costs compared to a year ago.”

Motor

Pearson Ham also revealed that motor premiums were now around 54% higher than they were two years ago.

However, its figures showed that motor insurance had seen its first quarterly average price reduction since 2021 in Q1 2024.

The firm attributed this to a decrease of almost -3% in January alone.

It also revealed that eight out of 10 of the largest motor insurers decreased their pricing, with one lowering this by as much as -7.2%.

“The trajectory for motor insurance premiums has begun to soften, attributed to a stabilisation in the costs of repairs and parts,” Kennedy said.

“While motor insurance premiums have passed their highest point, the anticipated timing for lowering of home insurance premiums remains uncertain, indicating a potential prolonged period of elevated costs.”