Pearson Ham Group has found that prices for combined buildings and contents home insurance increased by 4% in July 2023. The monthly analysis signals a likely slowing in the rate of increase for home insurance premiums going forward, after the proliferation in pricing over the last 12 months.
The culmination of home insurance price increases over the 12 month period has resulted in home insurance prices now being 26% higher than this time last year, an all-time high.
Geographically, homes in London saw the largest rate of increase in home insurance premiums at 4.7% in July 2023. The monthly increase in London home insurance premiums resulted in the overall rise over the last 12 months to reach 28%, 2% higher than the national average of 26%. By comparison the lowest increase in home insurance premiums were in Wales, although still relatively high at 24%.
Pearson Ham Group’s home insurance analysis also found that premiums rose above the average rate for larger properties. Properties with four or more bedrooms saw their home insurance premiums grow by 28% over the year.
Stephen Kennedy of Pearson Ham Group, said:
“Home insurers have had a to address many challenges. Not least inflationary pressures, increasing claims and the impact of regulation to pricing. All of which have resulted in home insurance premiums reaching an all-time high.
“The unprecedented rise in home insurance premiums over the past 12 months will be felt by consumers but relief may be in sight. The lower monthly rate seen in July signals a change, and perhaps a return to normalisation in pricing. If not that, it at least suggests a reduction in the level of premium increases expected in the coming months.”
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