As Home Insurance Costs Rise Buy the Cover You Need

Over the past year, the average annual home insurance premium in the UK has seen a substantial increase of 5%, according to the most recent quarterly Home Premiums Index from Compare the Market. The report reveals that numerous factors contribute to this trend, such as a home’s proximity to trees, the type of roof installed, and additional features added to the insurance policy. There are other factors to consider too including claims history and excess amount. As all these elements fluctuate, they influence the costs for homeowners in different ways.

Key Points:

  • The average annual home insurance premium has risen by 5% over the last year.
  • Various factors, such as proximity to trees, roof type, and policy add-ons, can affect premium prices.
  • Other factors to consider include the deductible or excess amount and your claims history.

The Impact of Nearby Trees on Insurance Premiums

If your home is situated close to towering trees, your insurance premium may see a notable increase. This is due to the amplified risk and expense associated with potential property damage from falling branches during storms or extreme weather conditions.

Compare the Market’s research shows a significant variation in premiums based on a home’s proximity to large trees. The data is outlined in the table below:

Proximity to Tall TreesAverage Insurance Premium (£)
Further Away155

This indicates an approximate 20% increase in premiums for homes located near tall trees.

The Influence of Roof Type on Premiums

The type of roof on your property can play a significant role in determining your insurance premium. There are substantial differences in premiums, with houses sporting tile roofs being quoted the lowest at an average of £155, whereas thatch roofs are the most expensive at a significantly steep average premium of £1,176 – over 7 times greater than the average home insurance premium for Q1 of this year.

The table below provides a clearer picture:

Roof TypeAverage Insurance Premium (£)

If you do for example have a thatch roof you may want to consider specialist insurance, to help maybe you need a broker to advise you specifically on thatched roof insurance points to consider and to get the cover you need.

The Role of Policy Add-Ons in Affecting Premium Prices

house with yellow door

Additional features, or ‘add-ons’, to a home insurance policy, whilst offering added protection, can also impact the cost of premiums. Locks cover, home emergency cover, and freezer cover emerged as the three most popular add-ons last year.

The average insurance premium for home insurance policies without any add-ons is £140, while those with locks cover stood at an average premium of £170. Homes with home emergency cover and freezer cover have average premiums of £172 and £167 respectively.

Other Factors to Consider When Buying Home Insurance

While proximity to tall trees, roof type, and policy add-ons significantly affect home insurance premiums, it’s crucial to remember other factors when purchasing home insurance.

Your Property’s Age and Condition

Older homes or those in a state of disrepair may pose higher risks and thus attract higher premiums. If a property requires significant maintenance work or has old, outdated electrical and plumbing systems, the insurance provider may see this as a potential claim waiting to happen, hence the increase in premium costs.

Location and Neighbourhood Crime Rate

old house next to river and-lock

Location plays a huge role in determining your insurance premium. If your house is located in an area prone to natural disasters such as flooding or earthquakes, this will likely drive up your insurance cost. Similarly, if you live in a neighbourhood with a high crime rate, especially burglaries, you may find yourself paying more for insurance.

The Deductible

Your deductible is the amount you agree to pay out of pocket before your insurance kicks in. Typically, a higher deductible will result in lower premiums, while a lower deductible means higher premiums. It’s essential to find the right balance that suits your financial situation.

Your Claims History

If you have a history of making numerous insurance claims, insurance companies may view you as high-risk, leading to higher premiums. Maintaining a good insurance history by minimising claims can help keep your premiums manageable.

As Helen Phipps, home insurance comparison expert at Compare the Market, comments: “Homeowners should review their insurance policies regularly, explore potential cost-saving measures, and consult with their insurance providers to ensure they have the appropriate cover while taking advantage of potential discounts or adjustments based on specific circumstances and add-on requirements. Comparing deals online is one of the best ways to ensure you’re getting the right policy at a price that suits your budget.”

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