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 do home insurance prices change?

A rise in the number of claims and how much they cost to resolve can have a major impact on people’s home insurance premiums. Whilst the cost of materials has gone up, a change in premium can be largely due to an increase in the frequency and severity of weather events. Insurers paid out £1.6 billion in claims during the second quarter of 2025 to help homeowners and businesses bounce back from unexpected events and costly disruptions. (Source ABI)

What if my premium has increased and 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.

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.

What are some reasons a home insurance cost could rise?

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 Bram and Goretti, can see the number of claims and cost of them rise dramatically.

How can I reduce the cost?

Are your Buildings and Contents on the same policy? It’s cheaper to have them both covered on one policy as opposed to insuring them separately.

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 - just make sure it's an amount you could afford if you needed to make a 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.

If you ever need to claim, we’re here to help - please use our online claim form.

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.

Take a look at our LV= GI home customer reviews

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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. 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 names, 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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