Home insurance: best UK premiums and quotes rise by 19% in 2024 - Association of British Insurers report

The Association of British Insurers (ABI) has reported that in the first quarter of 2024, the average premium for home insurance increased by 19% - or £60 - annually.

The association said that following a severe winter for weather damage, home insurance premiums increased by 3% in the first quarter of 2024.

The average premium paid for home insurance including both buildings and contents coverage increased to £375 - it was £315 during the first quarter of 2023. But the quarterly increase of 3% is less than the 4% increase seen 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.

Read more: UK weather insurance claims hit record £573m in 2023

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.”

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In April, the ABI said that claims for weather-related damage to homes set a record of £573 million last year, more than a third (36%) more than the £421 million total of 2022.

Several named storms, such as Babet, Ciaran and Debi, contributed significantly to the increase, according to the association, whose records on weather-related domestic claims date back to 2017.

Homeowners’ storm damage claims, including those for high winds, totalled £133 million, with flooding adding £286 million. A further £153 million of weather claims came from burst pipes, most of which happened in the first three months of 2023 at the tail end of a cold winter.

The average weather-related payout for home insurance last year was approaching £5,000, at £4,916. This was a jump compared with 2022, when the figure was £3,077.