Home insurance prices across the UK have shot up over a quarter in the last three years, according to a study.
Analysis of over seven years of data and millions of home insurance customer quotes, by MoneySupermaket, shows the cost of home insurance has increased by 27% — from £113.30 to £143.73 — since the first quarter of 2017.
However, despite the rise in price, the trend also indicates the year-on-year increase is slowing, following an 8.5% rise in the first quarter of 2018, 14.35% in the same period in 2019 and 2.58% this year — which is good news for homeowners.
Northern Ireland residents saw a country-high 11% jump in the cost of their home insurance in the first quarter of 2020, compared with the same period in 2019.
However, Londoners pay the highest cost at £204.78 — 6% higher than the same period last year. Residents of the capital pay nearly £60 more than the national average — £144 — to insure their homes against loss, theft or damage.
Analysing the most recent figures, there has only been a 1% increase when comparing the averages for April 2020 — £147 — and April 2019 — £140.39.
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Kate Devine, head of home insurance at MoneySuperMarket, said: “It’s reassuring to see the yearly rise in home insurance costs has slowed to less than 3% at the beginning of 2020. However, some areas of the country do seem to be seeing increases at a higher rate than the average.
“The COVID-19 lockdown will likely have had an impact on home insurance prices this year. In the short term, this may mean the difficulty in hiring professional tradespeople could heighten the risk of accidental DIY damage and result in higher claims, but also that the lower risk of burglary due to more people staying home could be a factor.
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“The best way to ensure home insurance costs are kept manageable is to shop around and make sure that you’re on the best deal for you.”