If your latest home insurance quote makes you think you’re being penalised, you can rest assured — it’s not personal. The price of home insurance soared by a massive 36% in the twelve months to October 2023. So what’s caused a rise that seems out of all proportion to other costs?

  • Inflation — OK, bad as it’s been, inflation hasn’t got anywhere near 36%, but the cost of building materials has risen steeply. The quotes you pass on to the insurer’s loss adjuster are likely to be significantly more than before, and this is being reflected in premiums.
  • Climate change — There have been significantly more cases of extreme weather, such as storms or flooding, which can damage your home and lead to an insurance claim. The extra costs are being passed onto customers.
  • Your area — Some areas are considered as being at greater risk than others, whether the risk is flooding or burglary. If the risk in your area is now considered greater than before, you’ll see a sharp rise in your premium.
  • Home improvement — We all got out the DIY tools over lockdown, but if you used unusual materials, that could have an impact on your premium. This is because it would cost contractors a lot more to source materials or hire specialists for replacement.

How Can You Reduce Your Insurance Costs?

There are various measures you can take to reduce your insurance costs. One simple step, if you can afford it, is to pay annually upfront, rather than in monthly instalments. You can also look at whether you need your current size of property. If all your children have left, for instance, you may be paying high insurance premiums for a home that’s bigger than your needs.

You can also make your home more secure by installing high-security locks on windows and doors, burglar alarms and security cameras. In particular, make sure your home’s secure when you leave it empty — but the less you do that, the less your insurance is going to cost. A secure home not only makes your insurance cheaper, but also gives the loss adjuster no excuse to refuse your claim.

The single most crucial step you can take, though, is to arrange your policies through a good insurance broker, rather than trying to do it yourself. The broker will not only find you the most cost-effective policies that offer what you need, but reduce costs by bundling different policies together, where possible. You’ll not only save money, but also ensure that Allied Claims can get you what you’re entitled to, if you need to make an insurance claim.


All content within this column is provided for general information only, and should not be treated as a substitute for the Insurance advice of your own broker or any other Insurance professional. Allied Claims is not responsible or liable for any decisions made by a user based on the content of this site.

Allied Claims is not liable for the contents of any external internet sites listed, nor does it endorse any commercial product or service mentioned or advised on any of the sites. Always consult your own Insurance broker if you’re in any way concerned about your insurance cover.