Combined buildings and contents insurance bills have been rising steadily over the last two years from £138 to an average of £162.
Buildings insurance policies have risen 12 per cent year-on-year from £116 to an average of £130. Contents policies are up by £1, from £56 to £57 on average.
People who pay for a combined home insurance policy with monthly payments are paying 18 per cent more, at an average of £192, than those who pay in one go because of the interest applied to monthly payments.
The average cost of a combined policy for a flat is now £179, for a house it’s £171, and for a bungalow it’s £161, according to the data from Go.Compare.
The comparison website said inflation and the cost-of-living crisis, which has pushed up the cost of labour and building supplies, are two reasons for the rise.
It also said a rise in extreme weather conditions in the UK could be contributing to the price rise. UK houses aren’t built to withstand extreme heat or cold and that means cracks form more frequently and this can lead to subsidence and leaks happening more often.
The data comes as recent news revealed a rise in the number of burglaries which could also see prices rise for home insurance.
‘Rising costs across the board’
Ceri McMillan, Go.Compare home insurance spokesperson, said: “In 2023, we have continued to see rising costs across the board, from food to fuel and everyday bills, too.
“The cost-of-living crisis is continuing to have its impact, and insurers are also seeing cost increases in materials and labour. Unfortunately, all these factors combined mean increased costs in a range of areas – including our home insurance.”
