Combined home insurance premiums at highest rate since 2013

Brits are paying the highest rates for combined content and building insurance since 2013, with the COVID-19 lockdown driving up prices, research suggests.

In July, the average combined home insurance premium hit £146.72 — the highest since 2013, when prices peaked at £154.43, MoneySuperMarket found.

Premiums rose 4.16% over the year, and 2.08% between March and July 2020, the data shows.

They are now 29% higher than they were in early 2017, when they were at their lowest, at £113.30.

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Some regions even exceeded 2013 costs during the lockdown months of April, May and June, with home-owners in 21 areas experiencing the highest premiums ever recorded by MoneySuperMarket.

Guernsey is the most expensive area, with premiums rising by 16% since 2019, to £250 per month.

The research was based on more than seven years of data and millions of home insurance customer quotes.

There are several possible drivers behind the continuing rise in premiums, with the coronavirus pandemic likely to have had a big impact — especially during the full lockdown period from 23 March to July, when restrictions started to ease.

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“With many people remaining constantly at home — schooling, working and even exercising — the rate of accidental damage becomes significantly higher, and more claims spell higher costs for insurers,” explained Kate Devine, head of home insurance at MoneySuperMarket.

“In the coming months, as the nation manoeuvres the recession, it’s likely the home insurance costs will fluctuate. For example, the government’s stamp duty break is encouraging a spike in home moves, which could potentially cause a subsequent impact on home insurance costs.

She added: “Our advice to consumers is to shop around for the best deals. This has never been more important to ensure you are able to stay on top of your finances. By comparing the best home insurance deals and switching to more favourable rates, there are good savings to be made.”