Your home insurance renewal explained

Why are prices higher than last year?

Prices for home insurance are increasing because UK insurers are seeing a lot more claims due to an increase in the frequency and severity of weather events. On top of this, because of inflation, the claims are now costing more.

The premiums of the many have always paid for the claims of the few so this impacts everyone, even if you haven’t claimed.

Did you know? Storms Dudley, Eunice, and Franklin led insurers to deal with 170,000 claims for property damage, paying out £473 million to support affected customers in 2022. (ABI)

In October 2023, storms Babet and Ciarán reminded us how volatile the weather can be, increasing the number of claims again for flood and storm damage. 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.

What are some reasons for rising home insurance costs?

  • Building materials: Inflation, high demand, and global supply chain issues saw the cost of materials increase by over 30% from 2020 to 2023 (source: Consumer Price Index).
  • 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.
  • Property value: Buildings claim costs have increased due to house prices rising by 22% since 2019 (source: ONS).
  • 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 rise dramatically.
  • 2022 was one of the worst years on record: Home insurers paid out £2.5 bn to help customers cope with severe weather events (source: ABI). Our pricing has to factor in how likely it is to happen again and how much claims would cost.
We use the vast majority of your premium doing what we do best, looking after our customers in their time of need. 84% of all LV= home premiums went towards paying for people's claims. We're incredibly proud of this and it's something we'll continue.
Based on 2022 LV= data

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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.

Is your car covered with us, too?

It's no secret that car claims are on the rise. So, let's look at why it's happening and what we’re doing about it.

How insurance pricing works 

  • We know it’s frustrating to see an increase at renewal, especially if you haven’t claimed. It’s partly down to how insurance works. Everyone’s premiums combined have to be able to cover the costs for those unfortunate enough to have to claim. That’s why price increases can affect everyone – even if you haven’t claimed.
  • Trends like the number of claims from previous years, expected claims in future years and how much they could cost, are factored in. Increases in things like subsidence, fire, storms, floods and repair costs are also taken into account.
  • Insurers aren’t making huge profits. Here at LV= we’ve been impacted by these changes, too, and we’re finding new ways to reduce the impact it’s having on our customers.

Renewal premiums

Existing LV= Home customer? When your renewal's generated, we’ll compare your quote to a new customer's price for a like-for-like policy to make sure you’re paying the best price we can offer.

Why is my price different to last year?

If your quote's different to last year you might be wondering why, especially if you’ve not made a claim. Even if you’ve not moved house, bought a new car or changed your cover level over the last year, your property or vehicle is a year older now which makes a difference to your quote. Here are a few more things to consider…

The number of claims being made

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

Severe weather

Long periods of cold weather or rain can cause damage to homes and increase claims for things like burst pipes. When we calculate your price, we look at the likelihood of severe weather conditions and how many of our customers may be affected.

Where you live

The area you live in affects the cost of your home insurance. Typically, if your home's in an area prone to flooding, you may be more likely to make a claim and your price will reflect this. It's the same if you live somewhere with high levels of theft.

Cost of repair and labour

From TVs to tablets and kitchens to lighting, your fixtures, fittings and belongings are becoming more expensive to replace. Rising labour costs are also making it more expensive to fix these items, which can increase the cost of providing your 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, the higher the cost will be to re-build your home or replace your belongings.


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