What should you expect to spend for combined buildings and contents?
insurance if you’re a new house owner or renewing your existing policy? We
gathered quotes from a dozen of the leading UK house insurance firms to get an
the idea of the cost of house insurance based on characteristics such as excess and coverage. We describe average expenses and the range of possible prices you might find as you start shopping, both for basic and more premium coverage, below. Use this information to determine what sort of policy works within your budget and whether a quote is too good to be true, or if it is for more coverage than you require.
The Average Cost of House Insurance
According to our statistics, the average cost of house insurance is £174.63 per year.
but what you pay will vary depending on factors such as your age, region,
and property type.
That average amounts to a monthly cost of £14.55, but paying for your house insurance in monthly instalments is more expensive because interest is charged on top of this.
You can cover your buildings and contents under a single policy,
or you can get separate policies that cover only the building or only the
contents.
The most expensive of the three is the combination of buildings and contents
insurance, but this is because it protects more.
Buildings-only cover costs £121 and contents-only cover costs £78, therefore,
the average cost of purchasing two individual policies exceeds the average cost
of a combined policy.
You’ll also spend more if you add optional items such as:
- Cover for accidental damage
- Legal safeguards
- Cover for personal belongings while away from house
- Cover for bicycles
So consider whether you really need to include these.
How to Calculate the Average Cost of Home Insurance
House insurance protects you in two ways:
- Buildings insurance is intended to cover structural damage to your house, as well as the cost of rebuilding it if necessary.
- Contents insurance is intended to safeguard the goods you keep in your house, which might range from electrical items like your television to carpets and clothing.
Both forms of cover are available separately or as part of a combined house
insurance policy. In either case, insurers base the cost on factors such as the
location and size of the property, as well as the value of your valuables.
What factors influence the Cost of Home Insurance?
Because each property is unique, it is critical to obtain several quotations
in order to assess your house insurance cost.
The following factors will determine your personal expenses:
- How secure is your house? Do you have professionally installed burglar alarms?
alarms, smoke alarms, and window and door locks?
- Your location – do you live in a flood zone or in an area prone to
burglaries and vandalism?
- The state of your house. It may be more difficult to secure cover for your house while it is being renovated.
- Your house’s construction elements, such as a flat roof, thatched roof, or
timber frame.
- The type of coverage you choose: buildings insurance, contents insurance, or
a combination of the two.
- How much it would cost to rebuild your house if it were entirely destroyed.
- The worth of your belongings and contents.
Average Cost of House Insurance Based on Age
According to our statistics, the average cost of house insurance decreases
with age.
Again, it is dependent on your individual circumstances, but insurers
generally regard older house owners as less of a risk because:
- Statistically, they file fewer claims or for smaller sums.
- They have become increasingly concerned about security.
- They may be at home more frequently, making them a less appealing target for burglars.
- They are most likely financially comfortable and keep up with house
maintenance. - All of this adds up to a significant savings in premiums: people over the
age of 75 pays £62 less per year on average than people aged 35 to 49.
What effect does age have on premiums?
House insurance premiums are greatest for older residences, with
Victorian-era houses (constructed between 1850 and 1895) were the most
expensive to insure, at £184. Houses built between 1925 and 1940 are close
behind at £165, a 6.3 percent increase in the last year.
According to Consumer Intelligence, one reason older houses cost more to
insurance is that ageing pipes might result in water damage claims.
There is little evidence that the age of the house owner influences the insurance
premiums.
House owners over the age of 50 pay an average of £143, compared to £158 for
those under the age of 50. Both categories increased by somewhat more than 4% year on year.
The average cost of home insurance varies by property type.
The size and kind of your house or flat also have an impact on the cost of
your house insurance.
Houses, on average, cost the most to insure, at £184.
It’s because rebuild value — the entire cost of completely reconstructing
your house from scratch following a big disaster such as a fire, the cost may be higher
for houses than bungalows or flats.
Insuring listed structures is substantially more expensive than insuring
unlisted ones.
A non-listed building costs an average of £179 to insure, whereas a house
With a preservation order, it costs £224. This increases to £303 for a grade two
listed building and £312 for a grade one listed structure.
It’s because repairs to listed buildings can be far more expensive because
they require specialised materials and craftspeople, which can increase the
insurer’s claim costs.
There are also fewer insurers who can provide cover for listed structures,
so you’ll have fewer options. Prices will rise as a result.
Average cost of house insurance based on the number of bedrooms
Similarly to how houses are more expensive to cover than bungalows or flats,
The average cost of house insurance rises as the number of bedrooms grows.
A one-bedroom house costs £133 on average to insure, but a four-bedroom
house costs £213, a 60% increase.
The average cost of home insurance varies by region.
Your postcode is used to compute your house insurance quote since some areas
have a higher risk of claims due to factors such as crime or flooding, or have
more expensive property prices.
It means that house insurance is significantly more expensive in some sections
of the country.
Buildings and contents insurance in London is the most expensive in the
country, costing £246.58. At £159, the North East is the cheapest.
| Region | Avg. Cost buildings and contents | Avg. cost contents insurance | Avg. cost of buildings insurance |
| Greater London | £246.58 | 103.59 | £159.38 |
| South East | £198.83 | £79.08 | £138.17 |
| South West | £167.71 | £73.66 | £124.21 |
| West Midlands | £163.23 | £74.43 | £103.37 |
| North West | £161.57 | £76.81 | £105.15 |
| East Midlands | £165.67 | £74.52 | £106.58 |
| Scotland | £175.65 | £74.39 | £117.76 |
| North East | £159.61 | £72.60 | £105.86 |
| Wales | £162.55 | £72.29 | £107.97 |
| Northern Ireland | £206.87 | £73.50 | £134.62 |
How Much Does Monthly Home Insurance Cost?
The average monthly payment for buildings and contents insurance in the UK
is around £28.87 per month; monthly payments end up costing approximately 9%
more than buying ahead.
Why? Because paying monthly is really borrowing money, you must pay both the
premium and an interest fee each month. A £300 annual coverage, for example,
would cost £28.21 per month based on a 22.9 percent APR. Each month, you’d pay
about £25 towards the premium and £3.21 in interest payments (for a total of
£38.5 in interest costs over the course of the year).
If you have the cash, we recommend paying in full to avoid paying interest.
How Does Excess Influence House Insurance Premiums?
Your house insurance premium, like all insurance policies, can often be
decreased by deciding to pay a greater excess, and vice versa. The excess is
the amount you pay toward a claim before the insurer reimburses you. In most
circumstances, the more you are willing to pay toward a claim (the excess), the
lower your insurance rate.
While a larger excess/lower premium combination may interest you, carefully examine the financial effect of a greater excess should
you ever need to make a claim on your policy—you’ll need to be able to cover
the excess.
When you pay a higher excess, your premiums fall.
| Excess | Average Buildings & Contents Insurance Premium (Annual) |
| £100 | £300 |
| £200 | £262 |
| £500 | £226 |
| £1,000 | £148 |
What is a Compulsory Excess?
An excess is an amount you must pay towards any claim and is a compulsory
An excess is the minimum amount required by an insurance company. A mandatory excess is non-negotiable. Not all insurers impose a forced excess; some offer a £0 compulsory excess, allowing you to determine the total excess amount through your voluntary excess decision. Whether you have a mandatory excess or not, you can usually add a voluntary excess amount on top of the required excess.
What is a Voluntary Excess?
The voluntary excess, as the name implies, is an amount that you volunteer
to contribute on top of the compulsory excess. Selecting a voluntary excess
(thereby increasing the overall excess) should reduce your premium, but keep in
Keep in mind that your coverage is basically lowered if you need to file a claim.
Before the insurer will pay their portion of a claim, you must pay both the
mandatory and optional excess.
How to Get a Lower Cost on Home Insurance
When seeking house insurance quotes, you must always answer questions
honestly, but there are a few things you can do to help reduce the cost:
- Pay annually; paying monthly costs more in the long run since interest is
levied. - Purchase combined house and contents coverage rather than two individual policies from two different providers; it is usually less expensive.
- Pay for the appropriate level of cover; don’t take out a policy that
provides more value for your goods than you require, and precisely estimates your rebuild cost. - Remove any unnecessary add-ons.
- Install smoke alarms, burglar alarms, and strong locks to improve your house’s security.
- Keep your house in good condition, and you’ll have a lower likelihood of
filing a claim, which will protect whatever no-claims bonus you have.
Related Articles
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- Compulsory Excess: What It Is & How It Works
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- HOMEBUYER REPORT: All You Need To Know
