Winners revealed in the Finder Insurance Innovation Awards 2021
These inaugural awards recognise the insurance brands displaying the best innovations in their field.
Read more…Home insurance statistics
Have homeowners in Britain got their homes covered?
Despite home insurance providing vital protection for your home and possessions, many homeowners in the UK are choosing to not insure their homes. Our research shows that 19 million Brits have contents insurance, some 1.1 million fewer than 5 years ago. We explored why Brits are not buying contents insurance and what they are putting at risk without it.
Quick overview
- There are 22.6 million homes in the UK.
- Over a quarter (6 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 home insurance cost (for both building and contents cover) is £309 per year.
- That’s less than £6 per week to cover your building and its contents.
- Water damage accounted for over 30% of home insurance payouts.
- The Financial Conduct Authority reports that 6 million Brits are overpaying for their insurance (including home insurance).
- If those Brits paying a high premium paid the average premium they would save £1.2 billion a year.
£8.9 million
Was paid out per day in 2018 by home insurers to repair homes and replace contents.
Which regions are better at having their contents covered?
Northern Ireland is the best region for having their contents covered, with 82% of homes having cover. Whilst only 55% of London homes have contents cover. Explore the map below to see which regions have the most homes without contents cover.
Percentage of homes without home contents cover
| Region | Percentage of homes without home contents cover |
|---|---|
| South West | 22% |
| South East | 19% |
| East of England | 22% |
| West Midlands | 28% |
| East Midlands | 21% |
| Yorkshire and The Humber | 22% |
| North West | 24% |
| North East | 32% |
| Wales | 22% |
| Scotland | 26% |
| Northern Ireland | 18% |
| London | 45% |
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 to be covered on your contents insurance.
- A combined contents and building insurance policy cost an average of £307 a year.
- Building cover costs an average of £258.
- Contents insurance costs an average of £127.
- That’s the lowest average price since 2015 for contents insurance.
- Combined cover costs on average less than £6 per week.
- Paying an average home insurance policy monthly means would incurr interest payments of £34 over the year (on a £265 annual policy with 22.9% APR).
£6 per weekThe average home insurance policy costs (£307 a year)
Home insurance premium costs over time
We explored the data to find out how the median cost of home insurance premiums purchased online has trended over time from 2013 to 2019. Q3 figures from 2019 show that home insurance premiums are at their median highest rate since Q4 in 2013. In general, the trend of home insurance costs was on the decline from 2013 to until Q4 2018 where prices have begun to rise again.
| Time period | Median price paid for Home Insurance policies online |
|---|---|
| Q1 '13 | £154 |
| Q2 '13 | £153 |
| Q3 '13 | £150 |
| Q4 '13 | £146 |
| Q1 '14 | £141 |
| Q2 '14 | £138 |
| Q3 '14 | £136 |
| Q4 '14 | £134 |
| Q1 '15 | £132 |
| Q2 '15 | £128 |
| Q3 '15 | £126 |
| Q4 '15 | £125 |
| Q1 '16 | £117 |
| Q2 '16 | £117 |
| Q3 '16 | £116 |
| Q4 '16 | £115 |
| Q1 '17 | £113 |
| Q2 '17 | £115 |
| Q3 '17 | £124 |
| Q4 '17 | £125 |
| Q1 '18 | £123 |
| Q2 '18 | £125 |
| Q3 '18 | £128 |
| Q4 '18 | £141 |
| Q1 '19 | £140 |
| Q2 '19 | £141 |
| Q3 '19 | £145 |
Common 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?
£1.8 million
Is paid out every day for ‘escape of water’ claims.
What do people claim for on home insurance?
| Domestic claims incurred by peril (2018 Q3) | Percentage of claims |
|---|---|
| Fire & explosion | 17% |
| Theft | 12% |
| Weather | 6% |
| Escape of water | 30% |
| Domestic subsidence | 12% |
| Accidental damage | 11% |
| Other | 12% |
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 average contents policy costs just £127 a year, or £2.40 a week.
- 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 possessions, potentially at risk.
- Of those who do not have contents insurance, 16% reported not being able to afford it, while 13% felt they did not want or need it.
£2.40 per week
Is the average cost of contents insurance, less than UK households spend on takeaways per week (£4.40)
How many homes have contents insurance?
The latest report shows that over 19 million homes in the UK have contents insurance in 2018. This figure is, however, the lowest in the last 5 years, 1.1 million fewer than in 2013. Explore the graphic below to see how the number of households with contents insurance has trended over time.
| Year | Number of households with contents insurance (millions) |
|---|---|
| 2013 | 20.4 |
| 2014 | 20.4 |
| 2015 | 19.7 |
| 2016 | 19.6 |
| 2017 | 19.6 |
| 2018 | 19.3 |
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 | Price |
|---|---|
| Bungalow | £42,084 |
| Four bed house | £49,316 |
| One bed flat | £20,110 |
| Three bed house | £38,160 |
| Two bed flat | £26,966 |
| Two bed house | £28,506 |
Sources used
- ABI
- ONS
- Admiral
- Nimblefins
- Statista
Click here for more research. For all media enquiries, please contact:
Matt Mckenna
UK Communications Manager
T: +44 20 8191 8806
UK Communications Manager
T: +44 20 8191 8806
Related articles
The UK’s best home emergency cover in 2023
We’ve compiled a list of some of the best home emergency cover providers in the UK and the cover options available.
Read more…
Watchdog set to ban “lazy tax” on home and car insurance renewals
Find out the recent proposals from the FCA around overhauling insurance pricing and what this will mean for insurance firms and the consumer.
Read more…
Home insurance for the new normal
Download Finder’s report on how lockdown has impacted home insurance and read how the industry is handling new challenges and opportunities.
Read more…
Urban Jungle insurance review
Urban Jungle offers three kinds of policy: contents insurance, contents and buildings insurance and tenants’ liability, all created with renters in mind.
Read more…
Finder Home Insurance Customer Satisfaction Awards 2020
See the full results of our independent customer satisfaction survey of 750 home insurance customers – who’s got you feeling right at home?
Read more…
More guides on Finder
-
The UK’s best home emergency cover in 2023
We’ve compiled a list of some of the best home emergency cover providers in the UK and the cover options available.
-
Finder Home Insurance Customer Satisfaction Awards 2020
See the full results of our independent customer satisfaction survey of 750 home insurance customers – who’s got you feeling right at home?
-
Home insurance claims: How do they work?
Compare home insurance policies and read our step-by-step guide on how to make a home insurance claim.
-
Golf statistics
Golf is much more than just hitting a ball around a green. The sport demands patience, technique and years of practice – and money.
Ask an Expert