UK Home Insurance Prices Surge in 2024: Key Factors

Insurance Age reported in June that the average quoted price of home insurance rose by 41.6% in the 12 months to April, setting another new record for an annual rise. Inflation is the main culprit, but also an increase in property insurance claims...

Record-Setting Annual and Quarterly Premium Rises have seen the average quoted price for home insurance surged over the past year, marking the highest annual rise since Consumer Intelligence started tracking in 2014.

Weather Impacts Claims, Impacts Premiums

With the property insurance repair jobs we manage here at Action Insurance Repair, we’ve seen first-hand the increase in flooding damage and frozen pipe claims over the last couple of years...

Colder, wetter Autumns and Winters have seen an increase in property damage insurance claims, and customers who have made property insurance claims are experiencing substantially higher premium increases compared to those who haven't.

For example, over the past year, those with building claims led to a 50.3% increase, and water-related damage claims resulted in a 49.8% hike. In contrast, those without claims had an average increase of just 40.9% - still a substantial increase!

Although inflation obviously plays a part, the dramatic rise in home insurance premiums is also closely tied to an increase in property insurance claims, with claimants facing the steepest hikes. As climate change affects our landscape, our properties and how we live, property insurance premiums will undoubtedly rise, with water levels...

The Importance of up-to-date House valuations

We’ve mentioned this before, and we’ll mention it again, as we’ve seen first-hand the shock of an insurance premium not covering sufficient property damage repair...

We all know that property values can fluctuate over time, due to market conditions, renovations, or changes in the local economy. Accurate and up-to-date rebuild values are essential for maintaining appropriate property insurance coverage. Here’s why:

1.  Adequate Insurance Cover
   An outdated rebuild estimation can result in underinsurance, where the property policy doesn’t cover the full cost of rebuilding or repairing a residential or commercial property after damage.
2. Claim Settlements
   In the unfortunate event of a claim, an accurate cost ensures property owners receive a fair and prompt settlement. Insurers rely on realistic estimates to determine the amount payable for damage repairs or rebuilding, so an outdated or inaccurate quotation can cause delays and complications in claim processing.
3. Pay out Refusal
   Linked to the above, an outdated or inaccurate estimation can even lead to an insurance company refusing to pay out, which we have been witness to... With the backlog of insurance claims, following extremely cold and wet winters and autumns, it may be easier for an insurance company to say no to a claim, than to spend time re-valuing property and rebuild prices and updating policies.

Regularly updating your property’s rebuild cost guarantees that your insurance remains in sync with its current worth, providing peace of mind and financial security.

If hiring a RICS surveyor is not an option, BCIS offers a free calculator to estimate what the sum insured should be.

Click here to calculate your estimate.

If you or your client has property damage from flooding or other causes, we simplify the insurance claim process and get the job done efficiently. Call us on 01254 665333