Compare the Market’s latest quarterly Home Premiums Index shows that the average annual home insurance premium has increased by 5% over the past year. Average home insurance premiums in Q1 (January–March) 2023 were £156, up from £148 in 2022.
Average home insurance policies are on the rise, and there are a variety of factors that can impact premium prices for homeowners.
Homes near trees
The proximity of tall trees to your home can impact insurance premiums due to the increased risk and cost of property damage from falling branches during storms or other adverse weather conditions.
Premium data from Compare the Market shows homes near tall trees have an average insurance premium of £190, while properties further away cost £155 to insure. This equates to a difference of £35, or around 20%.
There are sizable differences in insurance premiums for homeowners, based on roof type, with properties that have tile roofs quoted at an average of £155, concrete roofs at £159, slate roofs at £162, glass roofs at £239, and thatch roofs at a significantly higher average premium of £1,176 – over 7x greater than the average home insurance premium in Q1 this year (£157).
Home insurance policy add-ons can also impact premium prices, although they can offer additional protection. Locks, home emergency, and freezer covers were last year’s three most popular add-ons.
Compare the Market’s data reveals that home insurance policies without add-ons have an average insurance premium of £140, while those with locks cover came to an average premium of £170. Additionally, homes with home emergency cover have an average premium of £172, and properties with freezer cover have an average premium of £167.
Helen Phipps, home insurance comparison expert at Compare the Market, said: “As average home insurance premiums continue to rise, it’s essential for homeowners to be aware of the factors influencing the amount they pay. For instance, proximity to tall trees can increase premiums due to the increased risk of property damage during storms. Our data also highlights a trend of higher premiums for homes equipped with alarm systems, certain lock types and specific policy add-ons.”
“Homeowners should review their insurance policies regularly, explore potential cost-saving measures, and consult with their insurance providers to ensure they have the appropriate cover while taking advantage of discounts or adjustments based on specific circumstances and add-on requirements. Comparing deals online is one of the best ways to ensure you get the right policy at a price that suits your budget.”