ILC ARTICLE

Home insurance premiums up 19% in a year 


Home insurance premiums rose three per cent in the first quarter of 2024, according to data from the Association of British Insurers. 

It reported that the average combined building and contents home insurance premium rose to £375, with buildings-only cover up five per to £298 and contents-only cover static at £132. 

The three per cent hike follows a four pent increase in the fourth quarter of 2023 and means that home insurance premiums have increased by 19% in a year.  

However, this has been attributed to severe weather in 2023, with weather-related home insurance claims reaching £573m – the majority of that due to flooding. 

Louise Clark, ABI’s Policy Adviser, General Insurance, said, “The longer we put off vital investment in flood defences, the more that flood damage will ultimately cost the consumer. An increase of the tax on insurance policies – Insurance Premium Tax (IPT) – was earmarked by government in 2016 to fund flood defences. This tax brings in billions for HMRC yet flood defence investment lags behind. 

“There are other important steps we need to consider too, including reform of planning laws to prevent home building on high flood risk areas and a greater focus on climate-resilient properties.” 

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