Your home insurance renewal explained

If you're an existing LV= Car or Home customer, you can be sure you'll always pay the same or less than one of our new customers when you renew.

Your quote will be compared to a new customer price on the same day your renewal was generated, based on the exact same cover.

Why are home insurance prices going up?

A rise in the number of claims and how much they cost to resolve has had a major impact on people’s home insurance. While the cost of materials has gone up, the rise in average premiums is largely due to an increase in the frequency and severity of weather events.

What if I haven’t made a claim?

When we calculate a price for a policy, we have to factor in what our overall claims costs will be to make sure there’s enough money in the pot for everyone’s claim.

Just like other businesses, the increased cost of things affects us and it can also affect our pricing. That’s why, even if you haven’t made a claim, your premium could go up.

What are some reasons for rising home insurance costs?

Icon of a house. Next to the house is a tall building.

Building materials: Higher costs of building materials increase the amount we have to spend on repairs.
Replacing belongings: As the cost to buy things like mobile devices, video games, wooden floors and sofas increases, so does the cost to replace them.
Severe weather: Storms are getting worse and more frequent. Floods and high winds, like those during storms Babet and Ciarán, see the number of claims and cost of them rise dramatically.

How do home claim costs affect my renewal price?

As claims get more expensive, so can home insurance. Our infographic shows how much on average different types of claims cost us in 2024 compared to 2025.

How can I reduce the cost?

Could you increase your voluntary excess? This is the amount of money you pay towards a claim yourself. The higher the excess, the lower your premium is likely to be. If you choose a higher voluntary excess, make sure it's an amount you'll be able to afford if you do need to claim.

What about reviewing your cover and optional extras? Take time to review your renewal documents and make sure you still need the cover and any optional extras.

It’s really important to us that we continue to put you first and give you the same great service you’ve come to expect. We continue to assess the value of our cover, and an increase in premiums is not something we take lightly.

What are we doing about it?

We know it’s hard to keep up with the cost of living at the moment and these challenges affect everyone

At LV= we’re doing everything we can to tackle these challenges...

Maintaining quality while controlling costs: We’re working with our suppliers to source key materials and tackle shortages in a more cost-effective way. For example, by getting sustainable timber closer to home, we’re reducing our transport costs.
Tackling delays: We’re bringing in specialist resource (like subsidence experts) to resolve claims quicker and control external costs.
Expert knowledge: We’re introducing contractors who work only on LV= claims, to improve efficiency and for a better customer experience.

Got a question? We might have answered it here...

How do I know my renewal price is the same or cheaper than a new customer?

Could I get a cheaper price at renewal?

Getting a cheaper quote could be due to a variety of things. Usually, it’s because the cover level or optional extras you’ve selected are slightly different. When we work out your renewal, we use all the same details you gave us when you set up your policy (plus any changes you’ve told us about). If you do get a cheaper new quote with us for the exact same cover you currently have, then please call us and we’ll amend your renewal quote.

From time to time, your renewal price may be cheaper than the price we’d give you as a new customer to reflect our view of changing risk. The regulation states that your renewal price must be the same or cheaper than the equivalent new price.

At renewal we’ll update your details to reflect the changes we know of, such as your car and its drivers being another year older. We’ll then calculate your price using these details.

Details include:

Amount of cover:
This includes your excess amount and any additional extras you’ve bought (such as legal expenses). When you get a quote on a price comparison website, these details aren’t always included – this is one of the reasons a new quote can appear cheaper than your renewal.
Timings:
Insurance prices can change frequently. This means that between your renewal price being calculated (30 days before your renewal date) and your renewal date itself, there may be changes to our prices. This could be due to inflation, the cost of claims, or a change to our view of the risk being insured. If prices go up after you’ve received your renewal quote, we’ll always honour your renewal price - as long as you renew before the expiry date.
Personal details:
We’ll calculate your renewal based on the information we already know about you, this includes the name, address, vehicle or home on your policy. If any of your details have changed or if we ask for additional information for a new quote that we didn't ask you when you took out your policy, this could result in a different price on the price comparison sites.
How you set up your policy:
We’ll take into account how you first bought your policy and how you set up your policy. So, depending on whether you bought your policy online or through our call centre, your price may be different.

I’ve had a renewal price, why have I been declined a new quote?

What legislation and regulations are in place?

From 1 January 2022, all insurers are adhering to a new pricing regulation set out by the Financial Conduct Authority (FCA). All insurers will make sure that existing customers never pay more than a new Car or Home customer for a like for like policy.

There's also the personal injury discount rate - or Ogden discount rate - which was announced in February 2017. This legislation means insurers now have to pay out bigger lump sums for personal injury claims. This has meant an increase in annual premiums.

Changes in taxation imposed by the government can also affect your price: Insurance Premium Tax (IPT) is a tax on general insurance premiums and has increased incrementally since it was introduced.

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