New research has revealed that the average home insurance premium has risen by 1.8% over the year to January. This makes the average cost of a policy now £124 across the UK, and, due to a combination of insurance premium tax rises and the weak pound, likely to keep rising.
The study, conducted by Consumer Intelligence, shows that over-50s have been bearing the brunt of the increase, with a rise of 3% in the past year (to £128), compared with increases of 1% on average for those under 50. People who are over the age of 50 will therefore need to be particularly savvy when it comes to finding a reasonably priced home insurance policy.
Other people who are having to be more savvy are those who live in the East of England, which has experienced the largest increase in premiums of 4.3%, with the average now standing at £122. Wales wasn't too far behind, with an increase of 3.7% year-on-year, while prices for those in the East Midlands rose by 3.4%. The only region that saw a fall was, perhaps surprisingly, London. However, despite prices falling by 0.9% in this area, it still saw the highest average of £147.
And these prices are by no means likely to fall anytime soon. Indeed, we are set for another rise in Insurance Premium Tax in June. Additionally, the weaker pound is causing the cost of the building materials needed to perform repairs to go up, and therefore also the cost of those repairs that are covered by home insurance policies.
John Blevins, Consumer Intelligence pricing expert, commented: "The rise in home insurance costs over the past year may just be the beginning once the impact of the weak pound and the next Insurance Premium Tax rise kick in. However, the impact will vary from insurer to insurer depending on the contractors they use. Competition for business remains intense, so shopping around remains important as there are plenty of insurers who want your business."
And competition isn't the only good news for those looking to get or renew a home insurance policy. The data shows that the cost of home insurance overall is still 7.8% lower than it was in February 2014, so we remain better off than we were just a few years ago, for now.
If you don't feel like you're better off than you were in 2014, in terms of your home insurance policy, then now could be the perfect time to see if you can find a better deal, before the next price rise hits. Why not use our comparison tool and see for yourself if you could save? Alternatively, the home insurance star ratings could give you an idea of the best home insurance policies overall, not just in terms of price.
Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.