The cost of an average home insurance premium rose 4% in Q4 of 2023, as insurers were hit by a succession of storms battering the UK, according to the latest household premium tracker by the ABI. Storms Babet, Ciaran and Debi alone brought claims totalling £352m.

Louise Clark, ABI’s policy adviser for general insurance, said: “The succession of storms that have battered the UK in recent months underlines the importance of home insurance, with insurers supporting thousands of customers whose homes and possessions have been damaged or destroyed. Despite rising cost pressures, insurers are totally committed to doing everything they can to continue to offer competitively priced home insurance.”

The ABI’s Tracker covers over 16 million policies and examines the price consumers pay for their cover, rather than the price they are quoted. The figures show that between 1 October and 31 December the average premium paid for a combined buildings and contents policy was £364 – up £14 (4%) on the previous quarter. Over the last year (Q4 2022-Q4 2023) the average premium rose by 13% to £341. 

The average buildings only policy was £284, up £12 (4%) on the previous quarter. Over last year, the average premium increased by 15% to £262. For contents only cover, the average price paid at £131 rose £5 (4%) on the previous quarter. Over the last year, the average premium rose 7% to £124.

Bad weather played a significant part in the latest figures. Insurers paid out £352m, dealing with 36,000 claims to their home insurance customers following Storms Babet, Ciaran, and Debi. These were three of the six named storms that hit the UK in the last quarter of the year, along with a tornado in Manchester. The full insured costs of these storms will not be known for several months. The beginning of the year also saw a surge in burst pipe claims following a cold snap.

Clark added: “Flooding caused by extreme weather is devastating when it strikes people’s homes. That’s why it is vital more is done to increase investment in flood risk management that better protects communities which are at risk, alongside a zero-tolerance approach to building properties in areas of high flood risk.”