Home insurance price rises start to slow

31 Aug, 2016

Home insurance price rises have slowed with increased competition limiting annual price rises to just 1.6% taking average costs to £119, new analysis from insurance market research experts Consumer Intelligence shows.

Consumer Intelligence’s analysis – which is used by the Government’s Office of National Statistics to calculate official inflation statistics – shows premiums were virtually unchanged in the past three months.

Its quarterly Home Insurance Index shows prices were still nearly 10% lower in July compared with February 2014 despite concerns the Insurance Premium Tax increase in November last year would send costs soaring.

Instead relatively low claims for storm and flood damage and increased competition for business has kept prices flat.

Homeowners aged 50 and over have seen average increases of 2.1% in the year to July taking best-buy premiums to £111 while the under-50s have seen annual increases of 1% taking average costs to £126.

However prices in the past three months have fallen on average by 0.2% and are unchanged since December 2015.

Consumer Intelligence’s research monitors the five most competitive home policies across price comparison websites and direct insurers highlighting the need for homeowners to review their premium at their next renewal.