How Much Does Home Insurance Cost? An Expert Guide

The prospect of something happening to your home or belongings sounds like a nightmare, but having a great home insurance policy can put your mind at rest. Of course, it still needs to fit into your budget, so the first thing you’ll want to know is how much home insurance is.

In this article, we explain what home insurance is, the kind you need, how much it costs, and the factors that affect the price. We also offer the top tips to find the best deal.

Home insurance (also known as homeowners insurance) will reimburse you for some or all of the cost of repairing or replacing the fabric of your home and/or your belongings if they’re damaged. You can choose buildings cover or contents cover separately or combine the two in one policy.

Buildings insurance covers your home as well as permanent fixtures, like a built-in kitchen and bathroom suite. You’re usually covered for events and accidents, including:

You usually won’t be covered for problems like pest infestation, frost damage, blocked gutters, and general wear. Check your policy carefully to be clear about what’s excluded and whether there are any conditions that may invalidate your home insurance.

Contents insurance covers the belongings inside your home and sometimes certain things you carry with you, such as your phone. Standard cover usually reimburses you for events like fire and flood damage or theft, but you may also be able to add accidental damage cover.

You don’t need to buy separate buildings and contents insurance if you need both types of cover. It’s often cheaper to buy a combined policy and can speed up making a claim. However, if you have specific needs for the cover that you can’t find from one provider, it’s okay to have separate policies.

Purchasing buildings insurance is usually a requirement for property owners when taking out a mortgage from any good mortgage lender. However, if you live in a flat, your building may already be covered by the freeholder. In that case, you might still want to purchase a contents insurance policy, whether you’re renting as a tenant or living in a flat you own as a leaseholder.

The Association of British Insurers states that the average contents insurance cost was £132 per year in 2024, and the average building insurance cost was £298. For a combined policy, the 2024 average was £375.

This is a useful guideline to help you budget, but remember that the final premium depends on a range of factors. Let’s take a look below.

Here are some of the most common issues that can affect your home insurance cost:

Type of property

Whether you live in a flat or a detached or semi-detached house can impact your premium price. The size and age of your property can also make a difference. For example, if you own a listed building—one that’s officially protected for its special architectural or historic interest—it will likely cost more to cover due to stricter repair requirements and higher rebuild costs.

Location of property

The location of your property can increase certain risks, such as flooding or subsidence. These potential hazards will make your premium more expensive since, from the insurer’s perspective, the chances of making a high payout increase.

The value of your contents

The more expensive your belongings, the more they’ll cost to insure. You might also need to buy extra cover on top of your main policy for particularly expensive items, such as antiques and original artwork.

Previous claims

When you make a claim, the number or cost of previous claims can make your insurance more expensive in the future.

Additional extras

Some providers offer the option to add extras to your policy, such as accidental damage cover or family legal protection. Each extra type of cover adds more to the final cost.

To purchase home insurance, you’ll need to include details to make sure you’ve got enough cover for your property and belongings.

To work out the coverage you need for buildings insurance, for example, you could:

For contents insurance, you could:

Many people underestimate the value of their possessions, so it’s worth taking the time to carefully calculate the cost of replacement in case you ever need to claim. For expensive goods, you should check the maximum claim amount for single items, as you may not be able to receive the full amount.

In recent years, the average premium price has risen. In 2023, combined policies went up by an average of 13%, buildings insurance by 15%, and contents insurance by 7%. Some of this increase was caused by severe weather events, which means more people have been claiming, and the insurer bears higher costs. The cost of repairs and replacements has also risen alongside the cost of living, and building materials have become more expensive.

Knowing how much is home insurance can help you plan for the future if you’re thinking of purchasing a home. But if you’re looking to save money, even if you already own a home, you might want to find the cheapest home insurance policy available. Try these tips:

It’s usually required to purchase buildings insurance if you apply for a mortgage. However, building insurance may already be covered by your freeholder if you live in a flat. Contents insurance isn’t mandatory, but it’s definitely recommended for peace of mind.

Some home insurance policies may cover cash if it gets stolen or damaged. However, there may be a limit on how much you can cover. Make sure you check your policy carefully.

Yes, it’s definitely worthwhile to purchase home insurance. Losing your possessions or having a damaged or destroyed home can be devastating. The bills that follow can be very difficult to handle unless you’ve invested in a home insurance policy.