The average home insurance premium has topped £400 a year for the first time, with insurers blaming a wave of claims for bad weather. 

Home insurers have paid out record claims this year due to extreme weather, according to the Association of British Insurers (ABI).

This has led to the typical combined buildings and contents insurance premium rising 3 per cent, from £396 per year between April and June 2024 to £407 between July and  September. 

The ABI said insurers have paid out £4.1billion in property claims this year, the largest on record for the first three quarters of a year.

It represents a rise of £500million, or 15 per cent, on the same period of 2023. 

Most of this was caused by human factors such as theft, or accidents such as fire and breakages in the home. 

On the rise: Home insurance premiums have been rising steadily, heaping pressure on Britons

But £1.3billion was caused by damage to homes from storms, flooding, heavy rain and frozen pipes, as well as subsidence from hot weather. 

Storms and frozen pipe claim payouts reached £136million in the third quarter of this year. 

Claims for weather damage to businesses were £90million, while subsidence payouts were £66million – a rise of 11 per cent on the £59million paid in Q2 2024, and 61 per cent more than in Q3 2023.

The average payout per home insurance claim also rose to a record high of £6,002 this year, in Q2. 

The impact of high claims is reflected in the price of premiums. The average price of combined building and contents home insurance went up by 3 per cent in the third quarter of the year and 5 per cent in the quarter before that.

The average price of a household combined buildings and contents policy in Q3 2024 was £407 – £11 higher than the previous quarter and £56 higher than the same period last year.

The average buildings-only policy now costs £329, an increase of £9 on the previous quarter, and up £57 on Q3 2023.

For contents-only cover, the average price paid was £138 – stable from Q2 2024 but £11 higher than Q3 2023.

ABI policy adviser Louise Clark said: ‘We know premiums are putting pressure on household budgets and, as an industry we’re determined to play our part in tackling the cost pressures behind them. 

‘However, the industry cannot do this alone. The Government must take action too, and more investment in flood defence and maintenance is urgently needed. 

‘We also need to see swift action on surface water flooding, and an immediate end to building on land that is at a high risk of flooding. 

‘Flood prevention and resilience measures must be considered in all planning decisions and building standards – to make sure all new buildings are climate resilient.’

Compare home insurance, car insurance and travel insurance

Beat the renewal blues and compare the best deals for home, car and travel insurance.

Every year, these bills can creep up and the best way to save is to shop around to make sure your loyalty doesn’t cost you.

Prices tend to be similar across most comparison sites but may vary enough to make it worthwhile to check a couple. 

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We suggest:

HOME INSURANCE 

Before you start, you will need to know your home’s rebuild cost for buildings insurance, plus details of previous claims. For contents you need to know the overall sum to be insured and any high value or special items.

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Uswitch*

Also check Direct Line and Aviva that do not appear on comparison sites.

CAR INSURANCE 

Car insurance costs are sky high with many drivers finding renewal quotes have rocketed from the previous year’s price. 

Comparing costs is cheap and easy and can save most people money. We recommend checking one or prefrably two of: 

MoneySupermarket*

Confused.com*

GoCompare*

Uswitch*

Plus Direct Line and Aviva that do not appear on comparison sites.

TRAVEL INSURANCE

It’s a foolish traveller who departs without insurance, even if it only covers medical emergencies. Compare before you buy with:

MoneySupermarket

Compare deals from 35 leading providers

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See how much you can save from a few days to an annual policy 

Also try Direct Line that does not appear on comparison sites and if you have previous serious medical issues consider a specialist insurer or broker.