19% annual jump in average home insurance premiums
9 May 2024, 00:04
Last year was marked by bad weather, with weather-related home insurance claims totalling £573 million, the Association of British Insurers said.
The average home insurance premium jumped by 19% or £60 annually in the first quarter of 2024, according to figures from the Association of British Insurers (ABI).
The association said that home insurance premiums rose by 3% in the first quarter of 2024, following a severe winter for weather damage.
The average home insurance (combined buildings and contents cover) premium paid rose to £375. In the first quarter of 2023 it was £315.
The 3% quarterly rise is lower than a 4% quarterly increase recorded in the fourth quarter of 2023.
The ABI said that, when adjusted for inflation, prices still sit below peaks seen in the first quarter of 2016.
It said that 2023 was marked by bad weather, with weather-related home insurance claims totalling £573 million.
Towards the end of the year, storms Babet, Ciaran and Debi caused £352 million of damage to homes, according to the ABI.
It said that flooding is behind the biggest chunk of weather-related damage.
As well as flood defences, Louise Clark, ABI’s policy adviser, general insurance, said: “There are other important steps we need to consider too, including reform of planning laws to prevent home-building on high flood-risk areas and a greater focus on climate-resilient properties.”
