Home insurance is an essential consideration for UK homeowners. It provides coverage for your property, contents, and liability in case of unexpected events such as theft, fire, or natural disasters. However, one major concern for homeowners when selecting a policy is the cost of home insurance. In this article, we will discuss the average cost of home insurance in the UK and what factors affect the price.
What is Home Insurance
Home insurance combines two types of coverage: buildings insurance and contents insurance. Buildings insurance protects the structure of your home, including the roof, walls, floors, and permanent fixtures. Contents insurance covers the items inside your home, such as furniture, appliances, and personal belongings.
How Much Does Home Insurance Cost on Average in the UK
According to data from the Association of British Insurers (ABI), the average combined home insurance premium in the UK was £146 ($205) per year in 2020. This represents a slight increase of 1% compared to 2019.
However, it’s important to note that the cost of home insurance can vary significantly depending on several factors, including:
- Location: The area where you live can affect the cost of your home insurance. Some areas may be more prone to natural disasters such as flooding or have higher rates of crime, which can increase insurance premiums.
- Type of Property: The type of property you own also influences the cost of home insurance. For example, a larger house with a higher rebuild value will likely have a higher insurance premium than a smaller property.
- Age of Property: Older properties may require more maintenance and repairs, which can result in higher insurance premiums.
- Level of Cover: The level of cover you select, including the excess amount and any additional coverage options, can impact the cost of your home insurance policy.
- Claims History: If you have a history of making claims on your home insurance policy, this can lead to higher premiums.
How Can I Save Money on Home Insurance
While the cost of home insurance can be a concern for many homeowners, there are several ways to save money on your policy:
- Shop Around: Don’t settle for the first quote you receive. Shop around and compare quotes from multiple insurance providers to find the best deal for your needs.
- Increase Security: Installing security features such as burglar alarms and CCTV cameras can lead to lower insurance premiums.
- Bundle Policies: Some insurance providers offer discounts when you bundle your home insurance with other types of coverage such as car insurance.
- Increase Excess: Raising your excess amount – the amount you pay towards a claim before your insurance provider covers the rest – can lead to lower premiums. However, make sure you can afford to pay the excess if needed.
- Pay Annually: Paying your home insurance premium annually instead of monthly can result in lower overall costs.
Conclusion
Home insurance is an essential requirement for UK homeowners, providing protection for your property, contents, and liability. While the average cost of home insurance in the UK is £146 per year, this can vary significantly depending on several factors, including location, type of property, age of property, level of cover, and claims history. To save money on your home insurance policy, consider shopping around, increasing security measures, bundling policies, raising your excess amount, and paying annually. By taking these steps, you can ensure you have adequate coverage while staying within your budget.
