Average Home Insurance Cost in the UK

author image-cai
By Cai Bradley
Updated on Thursday 17 September 2020

Family outside a typical house

How much does Home Insurance Cost on Average?

In the UK, the average home insurance cost is £163.38 – according to the AA’s most recent report regarding the most common ‘buildings and contents’ home insurance policy.

The average house insurance cost calculated here represents an increase of 3.8% in comparison to the figures from last year.

Infographic showing the average cost of house insurance

Is the price of home insurance worth it? When you consider the fact that the contents of an average household in the UK is estimated to be £35,000, and the cost of the building itself usually costing a whole lot more, paying less than £200 to insure your home for 12 months is certainly worth doing.

Think about it; that’s £3 per week on average to insure your most prized possessions and the building you call home.

Buildings and Contents Insurance Average Cost for 2020

So, we know the typical house insurance cost, but what about the two various policies – contents insurance and buildings insurance?

How much is Buildings Insurance?

Annual buildings insurance costs an average of £119.22 in the UK according to the AA’s data collected at the end of 2018.

The price of average buildings insurance increased slightly by 0.7% during 2018, representing the general trend of increasing home insurance costs.

However, if you want to cover the ‘stuff’ inside your home as well as the property itself, you’ll need adequate contents insurance cover. So, what does the average contents insurance cost in the UK?

Average Contents Insurance Cost

The average price of contents insurance in the UK is £59.77 per year (AA) – that’s around £4.98 per month – which is a slight decrease on the previous year.

Typical contents insurance policies usually only cover items that are individually worth less than a set amount which differs with each quote, as outlined later in the article.

What does Home Insurance Cover?

Although we have established that the average price of home insurance is £163.38 per year, you should know exactly what you’re paying for before committing to a policy.

It essentially depends on which type of home insurance you take out, and there are typically three options – contents insurance, buildings insurance and both combined as an aptly named ‘buildings and contents insurance’ policy. A combined ‘buildings and contents’ insurance policy is usually more expensive, but is also the most popular type of cover for homes in the UK as it provides a more extensive level of cover.

What level and type of cover you need depends on your personal situation, so be sure to speak to an expert home insurance adviser before committing to a policy. There’s no use in over-insuring yourself, and under-insuring yourself could leave you without a pay-out when the time comes to claim.

What does Buildings Insurance Cover?

Typical buildings insurance policies generally cover the entities that are categorised as being part of your home’s structure – i.e. elements such as windows, walls and the roof. As well as this, buildings insurance includes cover for fitted kitchens, bathroom suites and any other static fixtures.

Despite each contract varying slightly, all of the best buildings insurance policies will cover your house in case of a:

  • Storm
  • Fire
  • Flood
  • Burst pipe
  • Burglary
  • Fallen tree
  • Subsidence

Subsidence is the term to describe the ground underneath your house collapsing or sinking, causing the building’s foundations to be damaged and become unstable.

The average buildings insurance will also cover you for things like vandalism, car and lorry collisions (with the house), and oil leaking from your heating. If your home has been damaged by any of the instances mentioned above, it’s certainly worth getting in touch with your house insurance provider to see whether you’re entitled to a claim.

Unfortunately, general wear and tear is not covered by most buildings insurance policies, and neither are minor instances of leaking gutters, damage from frost, and so on.

Keep in mind that some policies may become invalid if your home has been left unattended for more than a month or two, but you can check this within your own policy’s terms and conditions before signing on the dotted line.

What does Contents Insurance Cover?

With home contents insurance cover, you are essentially protecting the financial cost of your personal belongings within the house, such as furniture (curtains, chairs etc.), televisions, laptops and all electrical appliances, clothes, jewellery, and sports equipment.

Typical contents insurance policies often have a set ‘individual item limit’ – typically capped at £1,000. This essentially means that your items worth over £1,000 (or more, depending on the policy) will not be covered by the contents insurance, but can be covered as an optional extra.

Additional costly items – including expensive electrical systems, jewellery or collectibles – can be added at an extra cost, with the amount depending on its value.

There is also an option to purchase additional cover for going abroad, as many policies will become void if damage or loss occurs while you’re out of the country. By having this optional extra, you avoid losing your pay-out for instances that happen while you’re away, but you will also increase the overall cost of your home insurance premium.

Despite adding to the cost of your cover, it’s certainly worth considering, especially for those who are keen travellers and go abroad at least once or twice a year.

If you find that an optional extra has been included automatically and you do not need it – for example, if you pay extra for cover while you’re abroad but you never go overseas – be sure to contact your provider and ask to have it removed from your policy. Doing so should reduce the average cost of your home insurance policy.

How to get Cheaper House Insurance in the UK

The average cost of house insurance isn’t necessarily cheap, but it can be affordable for most homeowners through the right provider.

Generally, the cost of home insurance in the UK does tend to be increasing, which is largely due to the relatively new Insurance Premium Tax as well as factors including the weak pound, and electrical devices within homes becoming increasingly more valuable.

Some of the best ways to get the cheapest home insurance policy include increasing your voluntary home insurance excess (the amount of a claim you’re willing to cover yourself), increasing your home security, and living in a safer area (not that you should buy a house based purely on the cost of insuring it).

Below is a list of some of the key factors that could influence the price of your home insurance premium.

It's also important that you understand what can invalidate your home insurance before taking out cover, to avoid any nasty surprises in the future. 

Is it Better to Have a Higher Voluntary Excess on Your Home Insurance?

When you take out a home insurance policy, you will agree on a voluntary excess amount that you would be willing to pay on top of the compulsory excess the insurer sets, should you need to claim.

The higher that voluntary excess, the lower your premium is likely to be, as you will be covering more of the costs yourself.

It’s important to remember that you will have to pay this amount towards damages should an accident happen, so always set the excess to an amount that you can afford to pay comfortably.

Previous Claims

Homeowners often wonder whether their home insurance will be more expensive if they have made a claim before, and it probably will.

Just like car insurance, if you have made a claim on a home insurance policy previously, you are more likely to receive higher premiums as a result.

Unfortunately, it doesn’t necessarily matter why you made a claim, that’s just how insurance policies work due to the statistics showing that there is more risk of you claiming again if you have claimed before.

Address and Type of Property

If you live in a high-risk area – whether that is risk to theft and criminal damage, or storms and flooding – your insurance premiums are likely to increase.

Always take those factors into account when moving into a new home, but if you have lived at the house for years without making a claim, your current home insurance policy can be reviewed and you might find that you're offered a cheaper premium if you are being overcharged.

The size of the property (determined by the number of overall rooms) is also taken into consideration when insurance companies calculate your home insurance cost, as is the type of property – such as flats, bungalows, houses and studio apartments.

There are also rarer types, including thatched houses, which can understandably be quite costly to insure. Thatched house insurance generally costs more than others due to the increased risk of fires spreading, but precautions and preventions can be put in place which will allow your insurance provider to lower the premium.

How Much Does Home Security Save on Insurance?

Installing home security features can save you money on your insurance premium, including secure locks, up-to-date alarms and cameras.

Adequate home security could lead to you being offered a discount on your home insurance policy, as the house is more secure and therefore proves less of a risk to insure.

Do I need Business Insurance if I Work From Home?

Working from home could increase the price of your premium, basically because the value of your house rises due to it essentially being a ‘workplace’ as well as a home.

Most work-from-home occupations are covered by standard policies, but others do require specialist business insurance

Paying too much for Home Insurance?

When your circumstances change, you can often be entitled to a cheaper insurance premium, so be sure to notify your provider of anything that you feel might lower the cost of your cover.

If you’re paying above the average home insurance cost in the UK, be sure to bring the matter up with your insurer and enquire as to why that is. Alternatively, get a new quote today by using the button below, and see how much you could save!

Take a look at our simple guides to both contents and buildings home insurance for all the need-to-know basics before getting in touch with your home cover provider, to give you an extra insight into the various types of cover available.

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