What Is The Average Home Insurance Cost In The UK?

average Home Insurance Cost, More than Money

The average cost of Home Insurance in the UK can vary depending on the provider. 

And your postcode.

And whether or not you have children.

Or a dog.

Oh, and whether you’re single or not.

In fact, there isn’t much that won’t factor into an insurer’s decision when it comes to your monthly Home Insurance Premiums.

In this article I shall be looking in depth at what will affect the average cost of Home Insurance in the UK

Monthly premiums for any type of insurance are reliant on many different factors – and Home Insurance Policies are no exception. 

The value of your contents, which area you live in and even your lifestyle, will all play a part when it comes to calculating the cost of your monthly payments.

My article ‘What Is Home Insurance?’ has already explained to you what it is and why you should have it.

So now let’s look at what will affect the average Home Insurance costs here in the UK

How Much Should I Insure My Property For?

Home Insurance is normally broken down into Buildings Insurance and Buildings and Contents Insurance

Buildings Insurance covers any damage to the building itself.

This includes any outbuildings such as a shed or garage, and fitted fixtures; such as your kitchen and bathroom. 

This insurance will be down to your landlord if you live in a rented house. 

However, if you have a mortgage on your property this will be your responsibility.

So, how much Buildings Insurance do you need to take out?

Well, it’s worth knowing that you only need to insure the cost of rebuilding your home rather than its current market value. 

average Home Insurance Cost, More than Money
commonly forgotten items

The rebuild cost of your property will be on your home survey or buyers report.

OR you can work it out on the handy premiums calculator I have included at the bottom of this article. 

Aren’t I good to you?! 

It’s worth noting though, (and I’m sure you don’t need me to tell you this), that the more it would cost to rebuild your house, the more your monthly premiums will be.

Not that shocking, right?

How Much Should I Insure My Contents For?

Underestimating the worth of your contents is a common mistake.

And it’s one that could be very costly in the event of you needing to replace your personal possessions. 

It is a good idea to go from room to room and take an inventory of everything you own.

This way you can get an accurate idea of the total value of your contents. 

Don’t forget to add the value of curtains and carpets, clothes, furniture and books!

These are all commonly forgotten items when it comes to insurance, but will all have to be replaced in the event of loss or damage.

It’s worth knowing that some of your contents might need to be added to your policy as additional extras.

I’m talking now about items that might be deemed ‘high risk’ or ‘high value’.

Basically stuff that’s worth a lot and is more likely to get nicked in the event of a burglary. 

Items such as:

  • Antiques
  • Artworks
  • Laptops
  • Watches
  • Jewellery

If you own items that need to be covered under an additional or extended Home Insurance policy, then your premiums will be higher.

Which is a bit rubbish.

But, at least you can be properly compensated if the worst should happen. 

So, aside from the value of your property and contents, what other factors could drive those Home Insurance premiums up? 

Unfortunately, A LOT.

Anything from your postcode to whether or not you’re a smoker.

(Don’t look so surprised, if you’ve read my articles before, you’ll know that being a smoker is ALWAYS a factor when it comes to insurance).

See also  When to get Buildings And Contents Insurance When Buying A House

What Will Affect My Home Insurance Premiums?

The greater the risk of loss and damage to your house and the things in it, the higher your premiums will be.

Sounds fair, right?

So, if you live on the banks of a river that has flooded several times in the last few years…

..or 5 of your neighbours have been burgled…

…it’s safe to say you’ll be paying more than if you live in a gated property on higher ground that boasts several alarm systems and a booby-trapped moat.

Each insurer is going to have slightly different criteria, but these are the main factors that will affect your monthly payments:

1.Your Postcode

Where you live is one of the most important things that insurers will take into consideration when calculating your insurance premiums. 

Maybe you live in a street lined with several big trees whose roots could cause subsidence, or the crime rate is particularly high…

Or perhaps you live in a gated community, or in an area that has a very successful neighbourhood watch programme?

 You can expect those things to be taken into account by your insurer.

2.Security

Ahh, do you remember the good old days?

When you could leave your front door wide open and the keys in the car and go out all day and everything was still there when you returned? 

No, me neither.

But what I do know is that locks and alarm systems are key when it comes to lower insurance premiums. 

Even the presence of double glazing and smoke detectors will favourably affect your monthly payments.

3. If You Live Near Water

If you live near water, you can expect your premiums to be a lot higher than if you didn’t.

Particularly if it is an area that is known to be prone to flooding. 

There is a separate flood insurance that you can take out if you do live on a known flood plain that will provide cover in the event.

This will include the cost of having to stay elsewhere if your property floods.

4.Structure 

Let’s just say that if the 3 Little Pigs were going to take out Home Insurance

..the ones with the houses made of straw and sticks are going to be paying considerably more than their bricklaying pal. 

Similarly, if you have a home with a thatched roof or timber frame then it will affect your premiums.

In fact, in that case, you may even need specialist home cover. 

5.Location, Location, Location

I’m talking here about whether you’re in the town or the country. 

Cities and towns are considered a higher crime and fire risk.

Whereas countryside properties are more at risk of flooding or subsidence.

6.Size 

We all know that size doesn’t matter (ssshhh, ladies…)…

..except when it comes to your home. 

A larger house will cost more to rebuild than a smaller one.

Therefore expect to pay higher monthly premiums for your Home Insurance if you live in a big house.

How Will My Age And Lifestyle Affect The Cost Of My Home Insurance?

I’ve put this in a separate category so I can break down the different factors. 

It might come as a surprise that how you live can affect your Home Insurance premiums. 

But, your age, whether you’re away from home a lot, and whether or not you smoke can all affect the cost of your premiums.

And here’s why.

1.How Your Marital Status Can Affect Your Home Insurance Premiums

Married couples are seen as more mature* and less of a risk than single people by insurance companies, so they tend to pay lower premiums.

(*I’m sure you have a million examples from your real life where that isn’t the case, but there you are – the insurance companies have spoken).

See also  What Is Home Insurance?

There is of course the added financial benefit of being able to cover both your possessions under one policy as a married couple – 

See, it’s not all arguing over who’s turn it is to unload the dishwasher and disagreeing over what to watch on Netflix.

2.How Your Age Can Affect Your Home Insurance Premiums 

Again, if you’re younger you could be seen as less mature when it comes to taking measures in safeguarding your home and possessions.

This could lead to higher premiums.

3.How Being A Dog Owner Could Affect Your Home Insurance Premiums 

Owning a domestic pet won’t normally increase your monthly payments.

Ah, good.

But, it’s worth noting that some dog breeds ARE typically associated with higher premiums due to the damage they could potentially cause to furniture etc. 

These include; Rottweilers, Dobermans, Staffordshire Terriers, Chows and German Shepherds.

(IMO the fact that Chihuahuas aren’t on this list is an absolute travesty)

4.How Having Children Could Affect Your Home Insurance Premiums

Simply put, more people living in your house means more contents to insure, and more people who could damage your property.

Therefore higher premiums.

Seems fair enough – in fact some might say that the kids are more likely to wreck the joint than the dog!

And don’t forget all the ‘stuff’ involved when you’ve got kids!

There’s all the new contents you’ll have to insure if you welcome a new baby for example.

Babies are expensive – and the cost of prams, cots, toys, and clothes soon add up – probably to a lot more than you expect! 

If you do welcome a new arrival, it would be worth updating your policy.

5.How Leaving Your House Empty Can Affect Your Home Insurance Premiums 

Maybe you’re a family who travels a lot for work or pleasure, or the house is empty for a lot of the time for whatever reason. 

This is going to push your premiums up, even with security systems in place. 

Not only are empty houses more of a target for burglars and vandals, but there is more of a risk of problems such as burst water pipes in unattended properties.

6.How Being A smoker Can Affect The Cost of Your Home Insurance

Fires are one of the main reasons people might make a claim on their Home Insurance

Because of this, smokers are automatically deemed a higher risk and therefore will be charged a monthly higher premium.

And finally…

How Your Claims History Can Affect The Cost Of Your Home Insurance

In the last two years your toddler has knocked over two Ming vases.

Your teenager has dropped his Xbox down the stairs.

And the dog has thrown up on your Persian rug. 

Of course, you have made a claim against your insurance. 

Insurers are often suspicious of those who make a lot of claims, and you’ll find that even legitimate claims will cause your premiums to rise. 

If you haven’t made any claims you might be rewarded with a ‘no claims discount’.

Which makes it well worth keeping those priceless artefacts up on the higher shelves. 

You asked “How Much Does Home Insurance Cost?” and hopefully this has given you a little more ammo in your search. 

I haven’t given you an exact figure of course – because that will all depend on the factors I’ve mentioned!

But, hopefully you now have a clearer idea of what you can do (or stop doing!) to keep those premiums as low as possible!

Be sure to check out my other Home Insurance related articles in Articles by Andy!


Andy

28 years is a long time to do anything and that’s how long I’ve been giving financial advice for! Everything you’ll ever need to know about Mortgages and Home Insurance can be found within the digital walls of this website. Fill your boots with as much knowledge as possible and if you have further questions or would like to get the ball rolling on buying your new home then I would love to help you! I promise to keep things as simple as they need to be and don’t worry about all the paperwork, me and my team can cover that!

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