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Home insurance cost · ABI Q2 2026

£383 a year, on average

That's what UK households actually paid for combined buildings and contents cover between April and June 2026. Here's how it's moved, what pushes your own price up or down, and what paying monthly really costs.

Updated 6 October 2026 · Figures sourced and linked
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£383Combined buildings & contents, down 2% a yearSource: Association of British Insurers, 3 August 2026
£309Buildings only, down 5% a yearSource: Association of British Insurers, 3 August 2026
£118Contents only, down 9% a yearSource: Association of British Insurers, 3 August 2026
12%Insurance Premium Tax included in every premiumSource: HM Revenue & Customs, accessed October 2026

The trend

Four falls, then a rise

The ABI Property Insurance Premium Tracker is the UK's broadest measure of home insurance prices. It covers 15.5 million policies a year and records what customers paid, not what they were quoted, which typically gives lower averages than price-comparison data.

Combined premiums fell for four quarters in a row, from £396 in Q1 2025 to £375 in Q1 2026 (ABI Q1 2026). In Q2 2026 they rose £8 to £383, the first quarterly rise since early 2025, though still £9 lower than a year before.

The rise came as claims hit records: insurers paid a record £6.1 billion in property claims in 2025 (ABI), and the average home claim passed £7,000 in Q2 2026.

Average combined premium paid · Q2 2026
£383
ABI Property Insurance Tracker
£360
£370
£380
£390
£400
Q4 2024Q1 2025Q2 2025Q3 2025Q4 2025Q1 2026Q2 2026

Axis starts at £360 to show quarterly movement. Average price paid for combined buildings and contents cover. Sources: Q2 2026, Q1 2026, Q4 2025, Q3 2025. Q4 2024 and Q2 2025 are derived from the ABI's stated year-on-year changes.

Quote checker

How does your price compare?

Type in a quote or renewal price to see it against the national average for that type of cover, how much of it is tax, and what spreading it over 12 months adds.

Paying monthly is usually a credit agreement. The FCA found around 40% of home and motor customers use premium finance, typically at 20–30% APR where firms charge for it, and almost one in five pay over 30% (FCA retail insurance roadmap).

Type of cover
UK average paid, Q2 2026£383Type your own quote to compare it.
Pay monthly
£36
× 12 at 25% APR
Extra a year
£48
vs paying £383 up front
Of which IPT
£41
at 12%

Averages are what customers actually paid across 15.5 million policies (ABI, Q2 2026); your postcode, rebuild cost and claims history move your price far more than any national figure. The FCA found premium-finance APRs typically run 20–30% when firms charge for paying monthly (FCA); some charge nothing, so check the APR on your quote. Assumes 12 equal instalments and the 12% standard rate of Insurance Premium Tax included in the price.

What sets your price

Why your quote isn't the average

A national average blends 15.5 million very different homes. These are the things insurers actually price.

Where you live

Flood, subsidence and crime risk vary street by street. Around 6.3 million properties in England are in areas at risk of flooding (Environment Agency).

Rebuild cost

A higher buildings sum insured means a higher premium, and rebuild costs are rising 4.3% a year.

Claims history

Recent claims, especially for escape of water or subsidence, usually push prices up for several years.

The property itself

Age, construction, roof type and whether it's listed or non-standard.

Security and occupancy

Approved locks and alarms can help; long periods unoccupied can restrict cover.

Cover and excess

Accidental damage, high contents limits and a low excess all add cost. A higher voluntary excess lowers it.

Paying less

Ways to cut the cost without cutting cover

  • Pay annually if you can. At 20–30% APR, monthly payments add a noticeable sum. If you must pay monthly, compare the APR as well as the premium.
  • Get quotes every year. Your insurer can't charge you more than a new customer at renewal (FCA PS21/5), but other insurers may price you lower.
  • Set the right sum insured. Too high wastes money; too low risks a cut claim. Use the BCIS calculator and our contents calculator.
  • Choose your excess carefully. The ABI's golden rule: only agree a voluntary excess you could afford to pay on a claim.
  • Drop add-ons you don't need, but think hard before removing accidental damage if you have children or pets.
  • Maintain the property. Clear gutters, fix leaks and check the roof: wear and tear isn't covered, and claims push future premiums up.

Questions

Straight answers

What is the average cost of home insurance in the UK?
£383 a year for combined buildings and contents in April to June 2026, based on prices actually paid across 15.5 million policies a year (ABI Property Insurance Tracker). Buildings-only averaged £309 and contents-only £118.
How much is home insurance a month?
The £383 average is about £32 a month before interest. Paying by instalments often costs more: the FCA found APRs typically of 20–30% where firms charge for it. Try your own APR in the quote checker.
Why has my home insurance gone up?
Mostly because claims cost more. The average home claim passed £7,000 for the first time in Q2 2026 and weather claims averaged £8,548 (ABI), while rebuild costs rose 4.3% a year (HRCI). Your own claims, property changes and postcode risk matter too. After four quarterly falls, the ABI average rose £8 in Q2 2026.
Is it cheaper to buy buildings and contents together?
Often, but quote both ways. The ABI's separate averages (£309 and £118) come from different groups of customers, so adding them up doesn't tell you what you'd save. Leaseholders and tenants usually only need contents cover.
How much of my premium is tax?
Home insurance carries Insurance Premium Tax at the standard rate of 12%. On a £383 premium including IPT, about £41 is tax.
Will I get a better price if I switch at renewal?
Possibly. The FCA's pricing rules stop your own insurer charging you more than an equivalent new customer, but they don't make every insurer price you the same. Comparing quotes each year is still the simplest way to check.

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. Home insurers pay out £846 million to support households (Q1 2026). 6 May 2026.
  3. Association of British Insurers. Adverse weather pushes property insurance payouts to £6.1 billion in 2025. 17 February 2026.
  4. Association of British Insurers. Year-to-date property insurance payouts hit record £4.6 billion (Q3 2025). 25 November 2025.
  5. HM Revenue & Customs. Insurance Premium Tax rates. accessed October 2026.
  6. Financial Conduct Authority. Retail insurance roadmap: claims handling and premium finance findings. 22 July 2025.
  7. Financial Conduct Authority. PS21/5 General insurance pricing practices market study: feedback and final rules. May 2021, in force 1 January 2022.
  8. BCIS for the ABI. House Rebuilding Cost Index (HRCI). August 2026 reading.
  9. BCIS (commissioned by the ABI). ABI/BCIS Rebuilding Cost Calculator. accessed October 2026.
  10. Association of British Insurers. Buildings insurance: consumer guidance. accessed October 2026.
  11. Environment Agency. National assessment of flood and coastal erosion risk in England 2024. 17 December 2024.

Keep going

Home insurance UK →What buildings and contents cover do, which you need, and how to compare policies on more than price.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.Flood insurance & Flood Re →Check whether your home can be covered through Flood Re and what changes in 2039.