What is the average cost of home insurance in the UK?

If you’re comparing quotes, you may have looked into the average price of home insurance in the UK. However, it’s important to note that this average can vary greatly depending on numerous details, from your age to your location.

Knowing how these factors can affect your home insurance costs can ensure you make an informed decision about the product you choose and may even help to drive the price down.

In this article, we’ll explore the average price of home insurance for the UK and the factors that affect it. We’ll also outline some features you may want to look out for when researching home and contents insurance for seniors.

What factors can influence home insurance prices?

Many different factors can influence home insurance prices in the UK. Some of these can be national trends, such as inflation or the cost of labour (which means repairs and replacement items cost more). However, your personal circumstances will also be considered when you get a quote. These factors can be put into four broad categories.

1. Your customer profile

• Your claims history: if you have a history of making insurance claims, you may face higher costs.
• Your credit score: some insurers may consider you less of a risk if you have a higher score.
• Your occupation: certain jobs may be considered higher risk. For instance, if your job requires you to have visitors to your home.
• Your age: some insurers deem older customers to be lower risk, as they may spend more time in their homes, can be more security conscious or are more likely to be on top of home maintenance, as they tend to be experienced homeowners.

2. Your property details

• Size and value: larger and more valuable properties typically have higher insurance costs due to expensive rebuild costs.
• Type of property: different types of homes (detached, flats) have varying levels of risk and replacement costs.
• Property age: older homes may cost more to insure due to the increased risk of structural issues or outdated electrical/plumbing systems.
• Construction materials: homes built with non-standard materials (e.g. thatched roofs) may be more expensive to insure or could require specific insurance.
• Security features: properties with enhanced security features (alarms, locks, CCTV) may receive lower insurance quotes.

3. Your location details

• Local crime rates: homes in areas with high crime rates may cost more to insure due to the increased risk of theft or vandalism.
• Flood risks: properties in flood-prone areas can also result in higher insurance costs, due to an increased risk of home damage.
• Geographic location: if you live in an area that’s prone to natural disasters such as mudslides or sees more subsidence from softer soils, your insurance is likely to reflect the increased risk with a higher cost.

4. Your insurance needs

• The level of cover you require: the more comprehensive your insurance is, the higher the price you’re likely to pay.
• Your excess: setting a higher excess on your insurance (the amount you’re willing to pay against repairs or replacements before your insurer contributes) can lower the cost of your policy.
• Benefits and features: adding optional extras, such as legal expenses or accidental damage, can add to the price of your home insurance, but may also be worth it should you ever need to call on such features.

Of course, every home insurance provider will have its own pricing model, but this summary covers many of the common factors involved.

What is the average price of home insurance?

According to Confused.com, the median average home insurance cost in the UK was £251.58 for 2023 [1]. However, this did differ greatly depending on the factors above.

For example, the company also revealed that customers in the North East were quoted a median cost for buildings and content insurance of £169. Whereas quotes in Northern Ireland averaged £340.

Also, when it came to the ages of property, buildings from the Victorian era (1850-1895) saw average quotes of approximately £247, almost a fifth (21%) higher than the next most expensive period of property (those built between 1910 and 1925). 

When comparing home insurance prices, the cost should always be considered against the quality of coverage and service provided. While one insurance quote may seem cheaper on paper, if it offers less financial protection or fails to provide cover for certain circumstances you’re likely to experience, it could cost you more in the long run.

How can I reduce the cost of my home insurance?

Whilst some influences, such as inflation rates, are out of your control, there are steps you can take to try and reduce the cost of your home insurance. These include:

• Improving home security with burglar alarms, smoke detectors and secure locks.
• Maintaining your home from keeping your roof in good working order to ensuring trees are safe and secure. Filing any paperwork or receipts from this work will help provide proof that you’re working to reduce the risks on your property.
• Avoiding unnecessary cover for example, if you don’t own your property, you may only need contents insurance (not buildings insurance).
• Increasing your voluntary excess if you're willing to make a larger contribution towards the cost of any claims you may make, your insurance cost will likely be lowered.

What are the benefits of getting home insurance through Age Co?

When researching home insurance cost comparisons, it’s important to look beyond the price of the cover and ensure you’re getting value for the money too. At Age Co, we select products and services that help you get more out of later life, such as Home Insurance, provided by LV=.

By switching with Age Co, you can find numerous features and benefits, while also helping to support older people in need. 

Benefits include:

0% interest charged for paying monthly

With other insurance companies, the cost of your cover can be higher if you opt to pay monthly rather than annually. This is because your provider will add interest to your total, in return for spreading your payment out. However, through Age Co, you can choose monthly payments at 0% interest, so you can pay at a pace that suits you and your finances.

5 Star ratings

Gold Home Insurance, provided by LV=, is 5 Star rated by Defaqto and includes cover such as Home Emergency and Accidental Damage as standard.

Charity support

Age Co is 100% owned by Age UK and gives its profits to the charity. In the last 5 years, Age Co has donated more than £12m to help provide ongoing support for older people who need it most.

Summary

As this article shows, the average price of home insurance in the UK is only a broad indication of what you may expect to pay. However, you may find it helpful to keep these key points in mind, the next time you need to get a home insurance quote:

• There are wider economic factors that will affect the cost of your home insurance, such as inflation and any labour shortages. They play a crucial role because the more expensive it is to repair your home or replace a household item, the more an insurance provider is likely to raise their prices.
• You may receive higher quotes if you have made a claim in the past or have a poor credit score. If you’re unsure where your credit score stands, there are online tools you can use to perform a check.
• Home insurance providers will also consider the age of your property, its location, and costs involved with repairs. Older homes or those built from non-standard materials may cost more to insure or need specialist cover.
• There are ways to bring down the cost of your home insurance, either by taking on voluntary excess or making adjustments to your insurance cover. However, price shouldn’t be the only deciding factor, and you’ll need to consider what level of protection is right for you, as well as the costs.

To learn more about switching your home insurance with Age Co, click here.

[1] Confused.com Statistics.