Home Insurance Statistics

Have homeowners in Britain got their homes covered?

14 May 2018

Despite home insurance providing vital protection for your home and possessions, many homeowners in the UK are choosing to not insure their homes. We have carried out research to find out more about home insurance claims, Brits’ approach to protecting their homes and what can happen in emergencies if you aren’t insured.

Quick overview

  • There are 22.6 million homes in the UK.
  • 5 million homes in the UK don’t have any form of home insurance.
  • The average home has contents worth in excess of £35,000.
  • The average premium (for both building and contents cover) costs £309 per year.
  • That’s less than £6 per week to cover your building and its contents.
  • The mosts common claim is for water damage, accounting for 28% of claims in 2017.
  • The average claim for a burst water pipe is £25,000.

£35,000

The average contents of a UK home is worth £35,000, yet 5 million homes are without home insurance.

Who is buying home insurance and who isn’t?

With over 22 million homes in the UK in 2017 – how many homeowners have insurance and how many are risking going without?

  • There are 22.6 million homes in the UK.
  • 5 million homes in the UK don’t have home insurance.
  • This equates to almost 1 in 5 properties are uninsured.
  • 42% of those who don’t have it say they can’t afford it.

5 million

Homes in the UK are uninsured.

How much does home insurance cost?

Home insurance comes in three main forms; contents insurance, buildings insurance or both. The price you pay will depend on a few factors, mainly where you live, how big your home is and what you want covered on your contents insurance.

  • A combined contents and building insurance policy cost an average of £309 a year.
  • Building cover costs an average of £265.
  • Contents insurance costs an average of £138.
  • That’s less than £3 per week for contents insurance.
  • Combined cover costs on average less than £6 per week.

£6

The average home insruance policy cost just £309 a year, or under £6 a week.

Home insurance claims

Whether your home has been broken into or adverse weather conditions have caused flooding – there may be a time where you need to claim on your insurance. The level of cover you pay for will determine what you are able to claim for, but what are the most common claims for?

£25,000

The average claim for a burst pipe is £25,000.

What do people claim for on home insurance?

Reason for claimPercentage of claims
Water Damage28%
Storm Damage19%
Accidental Damage17%
Theft14%
Fire Damage10%
Other12%

Contents insurance

Contents insurance is a way of protecting your personal belongings and items within your home. When taking out your policy it’s important to accurately estimate the value of your items in case you ever need to make a claim.

  • The value of possessions owned by all UK households now totals nearly £1 trillion.
  • Average amount of stuff owned, at £35,000, is worth more than the average annual UK salary of £27,000
  • Over a quarter of households – 7.5 million – have no contents insurance.
  • This means that there is over £266 billion unprotected possesions, potentially at risk.

£1 trillion

The value of all UK household possessions exceeds government spending for the last year.

How much are the contents of my home worth?

As a rough guide, the below list gives you an idea of contents valuation for the size of your home.

Property type Average contents value
One bed flat £20,110
Two bed flat £26,966
Two bed house £28,506
Three bed house £38,160
Four bed house £49,316
Bungalow £42,084

£1 million

Was paid out every day by travel insurers in 2016.

Big travel insurance payouts

The average claim for medical expenses is £1,300 – this has increased 40% between 2011 and 2016. Despite the average claim being £1,300, it is not uncommon to rack up thousands in medical expenses when travelling abroad.

The USA attracts more than 3.8 million UK visitors a year – and with a notoriously expensive healthcare system, it might come as no surprise that some of the biggest claims are by Brits visiting America. We explored some of the biggest claims from Brits in recent years to give you an idea of just how important travel insurance can be.

  1. The biggest claim on our list is for £760,000 by a toursist visiting the USA who required treatment for a stroke and an air ambulance back to the UK.
  2. The second largest claim is for over £250,000 by a traveller visiting the US who fell of a bicycle and required medical treatment for a brain haemorrhage and broken shoulder.
  3. The third largest claim was for a traveller visiting Chile, whose medical bills amounted to £136,000 after complications following an insect bite.

25 years

It would take 25 years working on an average UK salary of £27,500 to pay off the most expensive medical bill on our list of £760,000.

Travel insurance industry statistics

How big is the travel insurance industry and how many claims are policy holders making?

  • Claims are at their highest level since 2010 – when the volcanic eruption of Eyjafjallajökull cost insurers £369 million.
  • Despite this hike in claims, travel premiums fell to their lowest level since 2004 at £481 million in 2016.
  • In 2006, 62% of policies taken out were single trip. This has fallen to just 21% in 2016.
  • Age remains a huge factor in the cost of travel insurance, with those over 66 paying 3 times as much as those aged 18-30.

Travel insurance provider statistics

When buying your travel insurance it’s important to shop around and get the right policy for you and your holiday. We explored all the travel insurance providers on finder to give you a breakdown of some key stats.

  • Maximum cancellation cover allowance varied from £2,000 to £10,000.
  • Maximum medical cover varied from £10,000,000 to unlimited.
Minimum Maximum
Maximum cancellation cover £2,000 £10,000
Maximum medical cover £10,000,000 Unlimited
Data accurate as of 24/04/18.

For all media enquiries, please contact

Matt Mckenna
UK Communications Manager
M: +44 747 921 7816
T: +44 20 3828 1338
matt.mckenna@finder.com@MichHutchison/in/matthewmckenna2

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