Your renewal premiums explained

Why are prices higher than last year?

Prices for home insurance are increasing because UK insurers are seeing a lot more claims due to an increase in the frequency and severity of weather events. On top of this, because of inflation, the claims are now costing more.

The premiums of the many have always paid for the claims of the few so this impacts everyone, even if you haven’t claimed.

Did you know?

Storms Dudley, Eunice, and Franklin led insurers to deal with 170,000 claims for property damage, paying out £473 million to support affected customers in 2022 – source ABI – The Association of British Insurers)

In October 2023, storms Babet and Ciarán reminded us how volatile the weather can be, increasing the number of claims again for flood and storm damage.

It’s really important to us that we continue to put you first and give you the same great service you’ve come to expect.

We continue to assess the value of our cover, and an increase in premiums is not something we take lightly.

What are some reasons for rising home insurance costs?

• Building materials: Inflation, high demand, and global supply chain issues saw the cost of materials increase by over 30% from 2020 to 2023 – source: Consumer Price Index.
• Replacing belongings: As the cost to buy things like mobile devices, video games, wooden floors and sofas increases, so does the cost to replace them.
• Property value: Buildings claim costs have increased due to house prices rising by 22% since 2019 – source ONS.
• Severe weather: Storms are getting worse and more frequent. Floods and high winds, like those during storms Babet and Ciarán, see the number of claims rise dramatically.
• 2022 was one of the worst years on record: Home insurers paid out £2.5 bn to help customers cope with severe weather events – source: ABI.

  Our insurers pricing has to factor in how likely it is to happen again and how much claims would cost.

How insurance pricing works

We know it’s frustrating to see an increase at renewal, especially if you haven’t claimed. It’s partly down to how insurance works. Everyone’s premiums combined have to be able to cover the costs for those unfortunate enough to have to claim. That’s why price increases can affect everyone – even if you haven’t claimed.

Trends like the number of claims from previous years, expected claims in future years and how much they could cost, are factored in. Increases in things like subsidence, fire, storms, floods and repair costs are also taken into account.

We always try and make sure your renewal is competitive

For every quote we give, we’ve already searched a panel of insurers and found the lowest available price for the same level of cover you had last year.

Even if prices are going up, we’re committed to offering competitive renewal prices. That’s why, based on the same details, the price of your renewal quote from us will never be more than a quote we offer to a new customer. For more information on this please view our Dual Pricing Regulations page.

In fact, a lot of existing customers get a better price than those we offer to new customers.

If you find a cheaper price somewhere else

You should always check your documents to ensure details are up to date and cover is still suitable for needs, amendments can result in a change of price, sometimes for the better. Full renewal details can be found in My Account.

We do everything we can to make sure our prices are competitive. However, if you find a better deal from another insurer, please get in touch.

If you do shop around, please make sure to double check you’re comparing your current policy with a new one that has all the same details (the same rebuild cost, same property use, same locks and security features, etc) and also the same cover (for example, it also includes contents cover for specific items, any extra cover you might have such as home emergency cover, and the same excess).