Your home insurance premium explained

Find out how we work out the cost of home insurance 

The building materials your home is made from

The way your property has been built and the materials used can impact your premium. For example, homes with a timber frame or thatched roof have an increased risk of catching fire, so your insurer has to charge a higher premium to cover them.

Where you live

The area you live in has a bearing on the cost of your home insurance. Typically, if your home's in an area which is prone to flooding, you may be more likely to make a claim. This will be reflected in your insurance price. The same applies if you live somewhere with high levels of theft crimes - you'll normally pay more for your home insurance.

The type of building you live in

We assess detached, semi-detached and terraced houses differently, just as we do flats and other types of homes. We also take the size of your property into account - the more rooms and bedrooms in your property, the higher the cost will be to re-build your home or replace your belongings.

Government initiatives

Changes introduced by the government can sometimes have an effect on your home insurance price. For example, the Flood Re scheme, introduced in 2016, is designed to help people living in flood-risk areas get a home insurance quote. The scheme also helps insurers pay out when the homeowner makes a valid claim for flood damage. In return, insurance companies signed up to the scheme must pay premiums and an annual levy to Flood Re to fund the scheme.

Government changes to tax rules can also affect your price. If Insurance Premium Tax (IPT) increases, your annual price goes up too.

The costs of repair and labour 

From TVs to tablets and state-of-the-art kitchens to lighting, your fixtures, fittings and belongings are becoming more expensive to replace.

What’s more, rising labour costs mean it’s also getting more expensive to fix these items, which can increase the cost of providing home insurance and the price you pay.

The number of claims being made

We settle thousands of home insurance claims every month. If the number goes up, due to things like increased accidental damage claims or extreme weather events, this could mean the costs to insure your home could go up. 

Severe weather

Long periods of cold weather or rain can cause damage to homes and increase the number of insurance claims for things like burst pipes.

When we calculate your home insurance price, we look at the likelihood of severe weather conditions happening in the future and how many of our customers may be affected.