Home Insurance.quest

UK home insurance · 2026 data

Home insurance, without the guesswork

What buildings and contents insurance actually cover, which one you need, and how to compare policies on more than price. Built on the ABI's latest premium and claims data, FCA rules and Ombudsman decisions.

Updated 6 October 2026 · Figures sourced and linked
Which cover do I need? →Average cost £383
£383Average combined buildings & contents premium paid, Q2 2026Source: Association of British Insurers, 3 August 2026
£7,000+Average home insurance claim, a record, April–June 2026Source: Association of British Insurers, 3 August 2026
£3.4bnPaid on more than 560,000 home insurance claims in 2025Source: Association of British Insurers, 17 February 2026
38%Of buildings insurance complaints upheld by the Ombudsman, 2025/26Source: Financial Ombudsman Service, 21 May 2026

Start here

Which cover do you need?

Home insurance is two products that are often sold together. Buildings insurance pays to repair or rebuild the structure: walls, roof, windows and permanent fixtures such as a fitted kitchen and bathroom suite. The ABI's buildings insurance guidance adds drying out, decontamination and alternative accommodation while your home is uninhabitable.

Contents insurance covers your belongings: furniture, appliances, clothes, gadgets and jewellery. It is optional, yet the FCA's Financial Lives survey found a third of adults who own or rent their home had none in 2024, and only 28% of renters held it.

Who needs which depends on whether you own, rent or let, and whether there's a mortgage. Pick your situation.

Your home
Mortgage on it?
Buildings insuranceUsually required
Mortgage lenders usually make buildings cover a condition of the loan. Insure the rebuild cost, not the price you paid.Average paid on its own: £309 a year (ABI, Q2 2026)
Contents insuranceRecommended
Optional, but without it you replace everything yourself. 85% of adults in your position hold it (FCA, 2024).Average paid on its own: £118 a year (ABI, Q2 2026)

Buying both together? The average combined buildings and contents policy was £383 in Q2 2026. The buildings-only and contents-only averages come from different groups of customers, so don't read the gap as a guaranteed saving: quote both ways. ABI Property Insurance Tracker ↗

What it pays for

Claims are getting bigger

Insurers paid almost £3.4 billion across more than 560,000 home insurance claims in 2025, an average of £6,000 each (ABI annual property claims). By the second quarter of 2026 the average claim had passed £7,000 for the first time.

Weather is the main driver. The ABI's weather figures cover flooding, storms and escape of water from burst or frozen pipes, and that average reached £8,548, up 12% on a year earlier. A record spring pushed subsidence claims to £20,000 on average.

These are the risks a standard policy is built for. What it usually won't pay for is wear and tear, gradual damage and poor maintenance, which is why insurers ask about the state of your roof and pipes.

Subsidence£20,000
Flood, storm & burst pipes£8,548
All home claims£7,000+
Theft£5,100

Average claim paid by type, April–June 2026. Source: ABI Property Insurance Tracker, 3 August 2026.

Comparing quotes

Compare the cover, then the price

Two quotes with the same price can pay out very differently. These are the lines that decide a claim.

01

The sum insured

It's the most the insurer will pay. Buildings should be insured for the rebuild cost, not the market value; contents for the cost of replacing everything as new.

02

The excess

What you pay towards each claim. The ABI's golden rule on voluntary excess: only raise it to a level you could actually pay. Subsidence and escape of water often carry a higher compulsory excess.

03

Single-item and valuables limits

Contents policies cap any one item, typically £1,000 to £2,500 according to Which?. Rings, watches and bikes above that need naming.

04

Accidental damage and extras

Spilt paint, a dropped TV, a foot through the ceiling: accidental damage is often an add-on, as are home emergency, legal expenses and cover for possessions away from home.

05

How claims are handled

The FCA found only 32% of storm damage claims in its 2024 sample resulted in a payment, and flagged weak oversight of outsourced claims handling (FCA retail insurance review). Check the storm definition and the insurer's complaints record.

06

Monthly payment cost

Around 40% of home and motor customers pay by instalments, often at 20–30% APR (FCA). Work out the real cost with our quote checker.

Renewal

Loyalty no longer costs extra

Until 2022, long-standing customers often paid more than new ones for the same cover, a practice known as price walking. The FCA's pricing practices rules ended it: from 1 January 2022 a renewal quote can be no higher than the price a new customer would pay through the same channel.

That doesn't make your renewal the best deal on the market. It means your own insurer can't penalise you for staying. Other insurers may still price your postcode, property and claims history more kindly, so it is still worth getting quotes each year.

If a claim goes wrong, the Financial Ombudsman is free. In 2025/26 it received 6,399 buildings insurance complaints and upheld 38% of them (FOS annual complaints data).

Financial Ombudsman, 2025/26
ProductNew complaintsUpheld
Buildings insurance6,39938%
Contents insurance1,68530%

Upheld means the Ombudsman found in the customer's favour. Source: Financial Ombudsman Service, 21 May 2026.

Questions

Straight answers

What is the difference between buildings and contents insurance?
Buildings insurance pays to repair or rebuild the structure and permanent fixtures: roof, walls, windows, fitted kitchen and bathroom. Contents insurance covers your belongings, which the ABI defines as everything you'd take with you if you moved. Combined home insurance is both in one policy.
How much is home insurance in the UK?
The average combined buildings and contents premium actually paid was £383 in April to June 2026, according to the ABI Property Insurance Tracker. Buildings-only averaged £309 and contents-only £118. See the full home insurance cost breakdown.
Is home insurance a legal requirement?
No law requires it. But buildings insurance is often a requirement when taking out a mortgage, and a lease will normally say who insures a flat. Contents cover is optional.
Can my insurer charge me more at renewal than a new customer?
No. Since 1 January 2022 the FCA's general insurance pricing rules (PS21/5) have required that your renewal price is no higher than the equivalent new-business price through the same channel. Shopping around still matters, because other insurers price risk differently.
Does home insurance cover flooding and subsidence?
Most standard buildings policies include both, often with a higher excess for subsidence. Subsidence claims hit a record £20,000 average in Q2 2026 (ABI). If you're struggling to find flood cover, read our Flood Re guide.
What can I do if my home insurance claim is turned down?
Complain to the insurer first. If you're unhappy with its final response, or eight weeks pass, take it to the Financial Ombudsman Service for free. In 2025/26 it upheld 38% of buildings insurance complaints and 30% of contents complaints (FOS complaints data).

Sources

Where the numbers come from

We use primary sources only: trade bodies, regulators and government. Figures were checked on 6 October 2026. Spot something out of date? The source link is the fastest way to check.

  1. Association of British Insurers. Average claim for subsidence reaches record £20,000 amidst hot weather (Property Insurance Tracker, Q2 2026). 3 August 2026.
  2. Association of British Insurers. Adverse weather pushes property insurance payouts to £6.1 billion in 2025. 17 February 2026.
  3. Association of British Insurers. Buildings insurance: consumer guidance. accessed October 2026.
  4. Association of British Insurers. Contents insurance: consumer guidance. accessed October 2026.
  5. Financial Conduct Authority. PS21/5 General insurance pricing practices market study: feedback and final rules. May 2021, in force 1 January 2022.
  6. Financial Conduct Authority. Retail insurance roadmap: claims handling and premium finance findings. 22 July 2025.
  7. Financial Conduct Authority. Financial Lives 2024: general insurance and protection. 16 May 2025.
  8. Financial Ombudsman Service. Annual complaints data and insight 2025/26. 21 May 2026.
  9. Which?. Are you sure you're insured? Beware these 10 small print surprises. 4 May 2023.

Keep going

Buildings insurance →Insure the rebuild cost, not the market value. Check your sum insured against rebuild inflation.Contents insurance →Add up your belongings room by room and spot items over the single-item limit.Average home insurance cost →ABI premium data by quarter, plus what paying monthly really costs.Flood insurance & Flood Re →Check whether your home can be covered through Flood Re and what changes in 2039.