Home Insurance Cost
What affects the price of your home insurance
- See real prices for your home, not an estimate
- Compare over 40 providers with one short form
- Buildings, contents or combined cover
Home insurance cost depends on where you live, what it would cost to rebuild your home and how much your belongings are worth. Your claims history and the cover you choose shape the final price, so the only reliable figure is a real quote.
What drives the price of house insurance?
Each insurer weighs these factors in its own way, which is why quotes for the same home can vary a lot.
| Factor | Why it moves the price | Can you change it? |
|---|---|---|
| Postcode | Local rates of theft, flooding and subsidence | No, but good security helps |
| Rebuild cost | Sets the most the insurer could pay on buildings | Only by making sure it is accurate |
| Contents sum insured | More belongings means a bigger possible claim | Yes, by valuing them carefully |
| Construction and age | Thatch, timber frames and flat roofs cost more to repair | No |
| Claims history | Recent claims suggest a higher risk | Over time |
| Excess | A higher excess means you pay more of each claim | Yes |
| Extras | Accidental damage and legal cover add to the premium | Yes |
Home insurance prices by situation
Rather than one national figure, it helps to think about what pushes your own price up or down.
First-time buyers
Your lender will want buildings cover in place, and you have no claims history with a home of your own yet. Getting the rebuild figure from your valuation report right is the best way to avoid paying for cover you do not need.
Homes in flood risk areas
Flood risk can raise premiums sharply. Homes built before 1 January 2009 may benefit from Flood Re, which helps insurers offer flood cover. You can check long term flood risk in England on GOV.UK, which links to the services for Scotland, Wales and Northern Ireland.
Renters and students
Contents-only cover usually costs less than buildings cover, because the most an insurer could pay is lower. See tenants insurance or student contents insurance.
Owners of valuable items
If you own jewellery, art or watches worth more than your single item limit, listing them raises the price, but leaving them off can leave you short. High value home insurance explains the options.
What is included in your home insurance cost
The premium is more than the insurer’s price for the risk. Two parts are worth knowing about.
- Insurance Premium Tax: home insurance carries the standard rate of 12%, according to GOV.UK. It is included in your quote.
- Instalment charges: if you pay monthly, the total may include interest or a fee. Compare the total amount payable with the annual price.
Fair renewal prices and how to check yours
Since 1 January 2022, FCA rules have said insurers must offer renewing customers a price no higher than an equivalent new customer would pay. That rule applies within one insurer, so another insurer may still quote less.
The FCA rules also gave most customers easier ways to cancel automatic renewal. Check your renewal letter for the date and the price, then compare.
Ways to bring the cost down: pros and cons
| Step | Pro | Con |
|---|---|---|
| Raise your voluntary excess | Lower premium | You pay more when you claim |
| Fit approved locks and alarms | Discounts from many insurers | Cost to buy and fit |
| Check your rebuild figure | Stops you paying to insure too much | Takes some research |
| Pay annually | Avoids instalment charges | Larger upfront payment |
| Drop extras you do not need | Lower premium | No cover for those risks |
The Association of British Insurers also suggests not over-insuring with extras your standard policy may already include.
Before you get a price: what to have ready
- Year built, number of bedrooms and building materials
- Rebuild cost, from a valuation report or the BCIS rebuild tool
- Replacement value of your belongings
- Details of locks, alarms and smoke detectors
- Claims in the last five years
- The renewal price from your current insurer
See your real home insurance price with Tiger.co.uk
Tiger.co.uk compares home insurance quotes from over 40 UK providers with one short form, so you can see several prices for the same cover side by side. That gives you a real price for your home in a few minutes, rather than an estimate. Even a tiger likes to know what it is paying for.
For the different types of cover, go back to our home insurance hub, or see building and contents insurance. Many households also check home emergency cover and pet insurance at the same time.
Ready to see real prices? Start your home insurance quote with Tiger.co.uk. It takes a few minutes, and policies vary, so check the cover and excess on each quote before you choose.
Why is my house insurance so expensive?
The biggest drivers are your postcode, the rebuild cost of the home, flood or subsidence risk and your claims history. A high contents figure, an unusual build or extras you do not need can add to it too.
Is there tax on home insurance?
Yes. Home insurance premiums include Insurance Premium Tax at the standard rate of 12%, according to GOV.UK. It is built into the price you are quoted.
Is a home insurance calculator accurate?
A calculator gives a rough guide based on a few details. The only accurate price is a real quote, because each insurer weighs your address, home and history in its own way.
Why did my home insurance go up at renewal when I did not claim?
Prices can rise for reasons outside your control, such as higher repair costs or more claims in your area. FCA rules say your renewal price should not be higher than a new customer would pay with the same insurer, so comparing other insurers is the best check.
Does paying monthly make home insurance cost more?
Often, yes. Spreading the cost can mean paying interest or a fee on top. The quote should show the total amount payable, so compare that with the annual price.
Does a burglar alarm lower the cost of home insurance?
It can. Many insurers offer discounts for approved alarms and good-quality door and window locks. Check which devices your insurer accepts before you buy one.
Fact-checked by Ian Wilson, Managing Director at Tiger.co.uk. 20+ years in price comparison; MEng, Queen’s University Belfast.
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