Home insurance costs have risen by a whopping 36 per cent in the last year amid the cost of living crisis, a new report has found.
Data from Go Compare has revealed the cost for someone insuring their home reached an average of £213 by Q4 in 2023.
According to the price comparison service, combined home insurance policies are not the only costs that have gone up.
Contents only premiums jumped by 30 per cent, from £57 to £74, and buildings only premiums rose by 29 per cent, from £130 to £168, over the period.
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Home insurance policies have risen dramatically in the last year, a report has found
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Over the last two years, households have been forced to contend with the rise in the cost of living with high inflation and energy bills being a contributing factor.
Ceri McMillan, a home insurance expert at Go Compare, outlined what families have been forced to contend with financially in the last year.
She said: “Throughout 2023 we saw inflation hitting a lot of bills, and it appears that the cost of home insurance policies is no different.
“The cost of living crisis has taken its toll throughout the year and a rise of 36 per cent in combined policies isn’t the outcome that many will be hoping for.”
In recent months, the Consumer Price Index (CPI) rate of inflation has settled at around four per cent which is far cry from the 11.1 per cent reported for October 2022.
However, this remains higher than the Bank of England’s desired target of two per cent for inflation as the cost of living crisis looks likely to continue for the foreseeable future.
Go Compare’s home insurance policies are on average the most expensive for those in Northern Ireland, although Greater London is only £38 less at an average of £309.
Insurance policies are lowest for those in the Northeast of England, with the average cost of a premium sitting below average at £179, almost half of the cost in Northern Ireland.
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Families have been forced to contend with inflation-hiked prices
GETTYAccording to Go Compare’s home insurance expert, there are “different factors” which impact how much people end up paying.
Ms McMillan added: “Whether that is the size of your property or where you live, these things can all impact how much you are likely to pay for your insurance.
“If you are concerned about costs, there are things you can do, such as paying monthly rather than annually for your premiums. This is because interest is often added to monthly insurance payments so if you can pay annually this could help your keep costs down.
“Most insurers will also offer a discount when you purchase a combined home insurance policy rather than separate contents and buildings cover, but always check that you are opting for the right level of cover and make sure that you are shopping around.”
