A guide to the best UK home insurance companies and their policies.

A 2024 guide to finding the cheapest home insurance from the most suitable home insurance companies in the UK.

In this guide, we have compiled a list of factors to consider when trying to find the best and potentially the Cheapest Home Insurance Companies in the UK throughout 2024.

Before reading this guide, consider that your circumstances will determine your best choice. This guide serves purely as a reference to considerations. Any points made throughout this article are not intended to be advice. 

What is home insurance?

• The detail: Home insurance typically covers repairing or rebuilding your home. This can also cover replacing its contents if damaged, destroyed, or stolen.
• Examples might include repairing a roof after storm damage or replacing a stolen TV.
• Cost-saving: Maintaining your property and combining different insurance policies might result in discounts, potentially reducing your premiums.

Are natural events covered?

• Detail: The coverage for natural events like storms, floods, or earthquakes varies between policies and often depends on the property’s location.
• Examples: Coverage might include repairing damage from a tree falling in a storm or cleaning up after a flood.
• Cost-saving: Choosing a policy that accurately reflects the natural risks in your area can optimise your costs, possibly leading to lower premiums.

How much cover is needed?

• Detail: The amount of cover you need should ideally reflect the total cost to rebuild your home and replace all its contents at current prices.
• Examples: This might involve calculating the cost of rebuilding your house or replacing all possessions after a total loss.
• Cost-saving: Ensuring you’re not over-insured by regularly updating your policy can help avoid unnecessary costs.

New for old’ vs. indemnity?

• Detail: ‘New for old’ coverage means the insurance will pay for a brand new replacement of your damaged or stolen items, whereas indemnity cover only pays out the current value, accounting for wear and tear.
• Examples: ‘New for old’ would replace your five-year-old TV with a brand new model, whereas indemnity would pay out what the old TV is worth today.
• Cost-saving: Opting for indemnity cover on quickly depreciating items can reduce your premiums.

Can I lower my home insurance premiums?

• Detail: You can often lower your home insurance premiums by making your home more secure, agreeing to a higher excess, and shopping around for the best quotes each year.
• Examples: Fitting an approved burglar alarm might reduce premiums, as could opting for a £500 excess instead of £200.
• Cost-saving: Taking proactive measures to secure your home and carefully selecting your policy’s features can lead to substantial savings.

Does home insurance cover flood damage?

• Detail: Whether your home insurance policy includes flood damage can vary. For example, you may need additional flood insurance in some areas prone to flooding.
• Examples: Flood insurance would cover repairing flood damage to your home’s structure and replacing ruined furniture.
• Cost-saving: If you live in a low-risk area or have made your home more resilient to flooding, you might find lower premiums available.

What is home insurance excess?

• Detail: The excess is the amount you agree to pay towards a claim before the insurance starts to pay out, and the limit is the maximum amount the insurer will pay for a claim.
• Examples: If you have a policy with a £250 excess and a limit of £500,000, you’ll pay the first £250 of any claim, and the policy will cover costs up to £500,000.
• Cost-saving: Opting for a higher voluntary excess can lower your premium, but you need to ensure it’s an amount you can afford to pay in case of a claim.

How do I make a claim?

• Examples: This might include police reports for theft or photographs and repair estimates for damage.
• Cost-saving: Maintaining an explicit claims history by only claiming when necessary can qualify you for no-claims discounts on your premiums.
• Detail: Making a claim typically involves contacting your insurer as soon as possible after the incident, providing a detailed account of what happened and any evidence of the damage or theft.

What if I can’t live at home?

• Detail: If an insured event makes your home uninhabitable, your policy’s alternative accommodation cover should cover your temporary living expenses.
• Examples: This might include the cost of staying in a hotel or renting another property while undergoing repairs.
• Cost-saving: Tailoring this part of your cover to realistically reflect your needs and the potential costs in your area can avoid paying for unnecessary levels of cover.

How are valuables covered?

• Detail: High-value items such as jewellery or expensive electronics may need additional cover or to be individually listed in your policy to be fully insured.
• Examples: You might need to declare an expensive engagement ring or art piece separately to ensure the property has coverage for its total value.
• Cost-saving: Regularly reviewing and adjusting the insured value of your possessions, especially as their value changes, can ensure you’re not paying to over-insure items.

Overall Cost-Saving Note:

Understanding your home insurance policy and regularly reviewing and tailoring it to fit your circumstances can lead to substantial cost savings. Properly reviewing considerations means accurately assessing your property’s value and risks, negotiating policy features and excess, and staying informed about market rates to ensure competitive pricing. Regular market comparisons and leveraging no-claims discounts can further reduce premiums over time.

What to Look for in the Best Home Insurance Companies in the UK in 2024:

When protecting your home, the sanctuary for you and your loved ones, choosing the right insurance is paramount. As we move into 2024, the market is bustling with options, each offering many features and coverages. 

Here are vital factors to consider when searching for the best home insurance company in the UK:

1. Comprehensive Coverage

What It Is: The extent to which your home, belongings, and additional living expenses are protected.

What to Look For: Look for policies offering a balanced blend of structural coverage, content protection, and accommodation expenses in case your home is uninhabitable. Check for specific inclusions like accidental damage and home emergency cover.

2. Customisable Policies.

What It Is: The ability to tailor your insurance based on personal needs. 

What to Look For: Companies should offer flexible policies that allow you to add or remove the cover for specific items or risks, like high-value possessions, flood, or accidental damage.

3. Competitive Pricing and Discounts

What It Is: Fair pricing structures with opportunities to lower premiums.

What to Look For: Competitive base prices and discounts for no-claims history, security installations, or bundling policies. Remember to check for loyalty discounts or benefits.

4. Customer Service Excellence

What Is It? The insurer provides support for policy management and claims. 

What to Look For: Choosing companies with solid customer service reputations, clear communication channels, and positive feedback for claims handling and support may be favourable. Consider insurers offering 24/7 support.

5. Transparency and Clarity.

What It Is: How are the policy details, terms, and conditions communicated? 

What to Look For: Insurers that provide straightforward, jargon-free policy documentation with clear information about coverages, exclusions, and costs.

6. Claims Process Efficiency

What it is: The ease and speed with which claims are handled and settled.

What to Look For: Look for insurers with a track record of handling claims quickly, fairly, and without unnecessary hassle. Online claim filing and tracking can be a significant advantage.

7. Financial Stability and Reputation

What to consider: Consider the insurer’s ability to pay claims and its standing in the industry.

What to Look For: Find companies with strong financial ratings and a positive reputation for reliability and fairness. Long-standing companies often indicate stability and experience.

8. Policyholder Reviews and Ratings: 

What It Is: Feedback and experiences shared by current and past customers. 

What to Look For: Genuine customer reviews can provide insights into real experiences with policy coverage, claims, and customer service.

9. Adaptability to Changing Needs

What It Is: How well can the insurer adapt to your changing life circumstances?

What to Look For: Insurers that offer easy policy adjustments, whether you’re moving house, renovating, or acquiring new valuables.

10. Additional Services and Benefits

What It Is: Extra services or benefits add value beyond the basic coverage.

What to Look For: For benefits like legal cover, home emergency services, or dedicated account managers.

Final Thoughts: The best home insurance company for you in 2024 will depend on your unique needs, property type, location, and budget. It’s essential to compare multiple insurers, not just on price but on the value and quality of coverage they provide. Use comparison sites, but also look at direct insurer offers and read the fine print carefully. Your home is one of your most significant investments; ensuring it’s well-protected with the right insurance is crucial. As you embark on this important decision, consider all these factors to find a provider with the security and peace of mind you deserve.

Challenger Home Insurance Brands

Challenger home insurance companies in the UK are newer entrants or smaller firms aiming to disrupt the market with innovative approaches, often leveraging technology to enhance customer experience, efficiency, and pricing.

Some notable challengers include:

1. Lemonade: Utilises AI for handling claims and underwriting, offering a quick, user-friendly service with a portion of unused premiums going to charities chosen by policyholders.
2. News: Offers smart home technology alongside traditional cover, providing customers with devices to monitor their home’s health, potentially preventing incidents before they occur.
3. Hippo: Focuses on modernising home insurance through technology, data, and more accurate pricing, aiming to provide more transparent and customer-centric products.
4. Urban Jungle: Tailored for renters and younger homeowners, offering flexible and straightforward insurance policies that are easy to understand and manage online.
5. Wrisk: Provides an app-based platform offering flexible, adjustable cover. Their customer policies can be updated anytime with a transparent pricing model.

What are challenger home insurance companies Doing Differently?

• Technology Integration: Many challenger companies use apps, AI, and data analytics to streamline the application process, manage policies, and handle claims more efficiently.
• Customer-Centric Products: They often focus on transparency, simplicity, and flexibility, allowing customers to tailor their coverages closely to their needs and lifestyles.
• Innovative Pricing: Utilising more accurate data and analytics to offer competitive, often personalised pricing.
• Value-Added Services: Some provide additional services such as home monitoring systems, legal advice, and fast-track claims processes.

These challenger firms are reshaping expectations in the home insurance market by prioritising flexibility, digital solutions, and customer experience, appealing especially to younger and more tech-savvy consumers.

What could change in home insurance between 2023 and 2024?

Between 2023 and 2024, several trends and changes could impact the home insurance industry in the UK:

1. Technology Integration: Increased use of IoT devices and smart home technology may lead to more personalised risk assessments and potentially lower premiums for those with monitored security systems.
2. Climate Change Impact: As weather-related claims might increase due to frequent extreme weather events, insurers could adjust coverage terms and premiums, particularly in high-risk areas.
3. Regulatory Changes: Ongoing or new regulations may affect pricing, coverage options, and the overall market competition, focusing on consumer protection and stability.
4. Cybersecurity Coverage: As home systems become interconnected, the need for protection against cyber threats may lead to more comprehensive cyber insurance offerings.
5. Flexible and Customisable Policies: Consumer demand for more tailored insurance solutions may lead to more flexible policy terms, allowing homeowners to adjust coverage as their needs change.
6. Rise of Challenger Insurers: Continued growth of challenger and InsurTech companies might increase competition, leading to more innovative products and customer service improvements.
7. Sustainability Focus: Greater emphasis on sustainability might incentivise homeowners to invest in green technology or sustainable home improvements.
8. Data-Driven Pricing: Advanced analytics and data collection might lead to more accurate and individualised pricing models, reflecting the actual risk more closely.
9. Remote Assessments and Claims Handling: Ongoing improvements in virtual assessments for claims and underwriting could streamline processes and reduce the need for in-person evaluations.
10. Consumer Awareness and Education: Enhanced focus on consumer education regarding policy details, leading to more informed decision-making and potentially affecting demand for certain types of coverage.

These potential changes reflect the dynamic nature of the home insurance industry. The Home Insurance industry rapidly evolves with new technologies, changing consumer preferences, regulatory landscapes, and broader societal trends. As always, homeowners should stay informed and review their policies regularly to ensure adequate coverage as the market evolves.

What are the top 10 factors that could determine the best home insurance company?

Determining the best home insurance company can depend on various factors tailored to individual needs and preferences. Here are some key factors to consider:

1. Coverage Options: Look for a company offering the specific types of coverage you need, such as building insurance, contents insurance, or combined policies, and check for additional coverage options like accidental damage, personal possessions, or legal expenses.
2. Price: Consider the premiums quoted for the coverage offered. Ensure it’s competitive but also reflects the quality and extent of coverage you receive.
3. Customer Service: Assess the insurer’s reputation for customer service, including their responsiveness, claims handling process, and overall customer satisfaction. Reviews and ratings can provide insight into this.
4. Claims Process: Evaluate the efficiency and simplicity of the claims process. A straightforward, fast, and fair claims process is crucial.
5. Financial Stability: Ensure the company is financially stable and capable of paying out claims. Company stability can often be assessed through financial agency ratings, third-party articles, or business records.
6. Policy Exclusions and Limits: Understand what’s not covered by the policy and any limits on claims. Reviewing the policy will likely avoid unexpected out-of-pocket expenses.
7. Discounts and Incentives: Look for discounts or incentives that might apply to you, such as multi-policy discounts, no-claims bonuses, or reduced rates for additional security measures.
8. Excess Amount: Consider the compulsory and voluntary excess amounts, as these can affect the cost of your premiums and your financial responsibility in case of a claim.
9. Renewal Terms: Check how the policy renewal process works, including any terms or price increase changes.
10. Flexibility and Adjustability: Some insurers offer more flexibility in adjusting coverages or changing policy details. Flexibility in your policy can be beneficial as your circumstances may change.
11. Reputation and Reviews: Research the company’s reputation, including customer testimonials, reviews, and industry awards. Reviews provide an overall sense of reliability and quality. Remember that not all reviews are truthful nor accurate and may include some degree of bias or require circumstantial context.
12. Innovative Features: Some companies might offer innovative features or additional services, such as home emergency cover, cyber protection, or smart home discounts.

Choosing the best home insurance company is a subjective decision that should be based on thorough research and careful consideration. Doing so requires considering how these factors apply to your situation and priorities.

Insuro has partnered with Seopa to deliver a comparison service for home insurance.

Home Insurance Price Index Findings: August 2023

Key Findings

1. Overall Premium Increase: UK quoted home insurance premiums rose 25.7% from 12 months to July 2023. This is the most significant annual increase since tracking began in 2014.
2. Quarterly Increase: The past three months saw a 9.9% increase in quoted premiums, marking the most significant quarterly rise since 2014.
3. Average Premium: The average quoted price of a buildings and contents policy is now £212.
4. Regional Variances: Londoners pay the highest insurance premiums at £316, while the North East enjoys the lowest at £184.

Methodology

• The index and average prices are calculated from the top five cheapest premiums across price comparison websites (PCWs) and key direct brands.
• Monthly figures are concatenated to produce a trended price index from 100% in the base month.

Detailed Breakdown

Regional Insights

• London: Faces the highest quoted premiums on average at £316.
• South East: Sees the second highest premiums at £227, 49% higher than the UK average.
• North East: Offers the lowest premiums at £184, 13% lower than the UK average.

Age Group Insights

• Under-50s: Face higher quotes at £222 compared to over-50s at £199.
• Premium Increases: Under-50s saw a 26.3% rise in premiums over 12 months, slightly higher than the 25% for over-50s.

Property Age Insights

• Victorian-era Properties: Attract the highest premiums at £279.
• Modern Properties: Built between 1985 and 2000, or after 2000, have the lowest premiums at £197 and £198 respectively.
• Annual Increases: The highest increases for homes built between 1910 and 1925 were 28.3%.

Conclusion

In conclusion, this report indicates a significant rise in UK home insurance premiums across all regions, ages, and property types. The report indicates particular spikes in London and Victorian-era properties. The data above provides an authoritative source for understanding home insurance market trends and consumer impacts.