The average UK combined buildings and contents home insurance premium was £375 in the first quarter of 2026, according to the ABI's Property Insurance Premium Tracker, down 5% on a year earlier and the fourth consecutive quarterly decline. Buildings-only cover averaged £306 and contents-only cover averaged £117 over the same period.
TL;DR · LAST REVIEWED ABI Q1 2026: combined cover £375 a year (down from the £399 peak in Q3 2024), buildings-only £306, contents-only £117. Premiums fell even as insurers paid a record £846 million in quarterly claims, with the average household claim at £6,340.
ABI Property Insurance Premium Tracker: average UK premiums by quarter
| Quarter | Combined buildings and contents | Buildings-only | Contents-only |
| Q3 2024 (peak) | £399 | - | - |
| Q1 2025 | £396 | £325 | £132 |
| Q4 2025 | £380 | - | - |
| Q1 2026 | £375 | £306 | £117 |
KEY FACTS
- Average combined buildings and contents premium: £375 a year in Q1 2026 (ABI, prices actually paid across 15.5 million policies)
- Buildings-only averaged £306 (down 6%) and contents-only £117 (down 12%) year on year
- Premiums have fallen for four consecutive quarters from a £399 peak in Q3 2024
- Insurers paid a record £846 million in property claims in Q1 2026; average household claim £6,340
- Average weather-related claim £6,040 (up 38%); average subsidence claim £17,820 (up 9%)
How much is home insurance per month in the UK?
The average combined buildings and contents premium of £375 a year (ABI, Q1 2026) works out at roughly £31 a month divided across 12 months, though paying monthly through an insurer's instalment plan typically costs more than paying annually, since a financing charge is usually added.
The £375 average is a combined figure across buildings and contents cover; buying only one type of cover costs less, with buildings-only averaging £306 a year and contents-only averaging £117 a year over the same quarter.
These are national averages drawn from 15.5 million policies a year and reflect prices actually paid rather than quoted prices, so an individual premium can sit well above or below the average depending on rebuild cost, location, and claims history, covered in the next section.
What affects home insurance cost?
Home insurance premiums are priced individually on rebuild cost (for buildings cover), the value of contents insured, postcode-level risk such as flood or subsidence exposure, claims history, the excess chosen, and security features, meaning the national average is a reference point rather than a quote for any specific property.
Postcode-level flood risk is a significant factor in some areas, since insurers price against the statistical likelihood of a weather-related claim in a given location, which is also reflected in the record claims payouts covered in the next section.
A higher voluntary excess (the amount paid before the insurer contributes to a claim) generally reduces the premium, while a lower excess increases it. Security features and a clean claims history are treated as risk-reducing factors by most insurers, though the specific effect on price varies by provider and is not standardised across the market.
Why are home insurance prices rising or falling?
Average UK home insurance premiums fell for a fourth consecutive quarter to £375 in Q1 2026, even as insurers paid out a record £846 million in property claims over the same period, including an average household claim of £6,340, the highest on record.
The ABI's data shows a divergence between premium trend and claims cost: competitive pricing has pushed average premiums down 5% year on year, while the average weather-related claim rose 38% year on year to £6,040, the average subsidence claim rose 9% to £17,820, and the average theft claim rose 14% to £4,350.
This divergence is not necessarily stable; the ABI has flagged continued weather-related claims pressure as a factor that could limit how far premiums keep falling, since insurers price future risk partly on recent claims trends. Regulatory oversight of general insurance pricing sits with the FCA, whose rules require that renewal prices are not set higher than the equivalent new customer price.
RELATED GUIDES
DISCLAIMER
This guide is for general information only and is not financial advice. Credit products are regulated by the Financial Conduct Authority. Rates, fees and criteria change and vary by provider; check current terms directly with any provider and the FCA Financial Services Register before applying.
Frequently asked questions
What is the average cost of home insurance in the UK?
The average combined buildings and contents premium was £375 a year in the first quarter of 2026, according to the ABI's Property Insurance Premium Tracker, which is based on prices actually paid across 15.5 million policies a year rather than quoted prices.
Is home insurance getting cheaper or more expensive?
Average premiums fell for a fourth consecutive quarter to £375 in Q1 2026, down 5% year on year and below the £399 peak of Q3 2024. This is despite record claims payouts over the same period, including an average household claim of £6,340, driven largely by extreme weather.
Do I need buildings and contents cover, or just one?
This depends on circumstances such as whether the property is owned or rented. Buildings-only cover averaged £306 a year and contents-only cover averaged £117 a year in Q1 2026, both cheaper individually than the £375 combined average, though buying both separately is not always cheaper than a combined policy.
Why do home insurance quotes vary so much between insurers for the same property?
Insurers price risk individually using their own models, weighing rebuild cost, postcode-level flood and subsidence risk, claims history, and the excess selected differently from one another, which is why quotes for the same property can vary significantly across the market.
Does a higher excess reduce a home insurance premium?
Generally, yes. A higher voluntary excess, the amount paid before the insurer contributes to a claim, typically reduces the premium because the insurer is covering less of the cost of smaller claims, though the exact effect varies by insurer and by the size of the excess chosen.
SOURCES
- Association of British Insurers, Property Insurance Premium Tracker – accessed 19 July 2026
- Financial Conduct Authority, general insurance pricing rules – accessed 19 July 2026
- GOV.UK – accessed 19 July 2026
