On average across the market, a combined buildings and contents annual policy bought between April and June in 2026 cost £383, according to premium data from the Association of British Insurers (ABI).
What you’ll actually pay for home insurance will depend on a range of factors, such as where you live and the type of cover you choose.
Average home insurance cost in the UK
The average cost of home insurance in the UK provides a rough idea of what it might cost you.
| Cover type | Average cost April to June 2026 |
|---|---|
| Buildings and contents cover combined | £383 |
| Buildings-only cover | £309 |
| Contents-only cover | £118 |
These figures are market averages for annual premiums reported by the Association of British Insurers for combined, buildings-only and contents-only home insurance policies bought between April and June 2026. They don’t represent the cost of an individual quote from Direct Line, and your own price may be higher or lower.
While contents-only cover has the lowest average cost in this ABI dataset, the policy you’ll need will depend on your situation. If you own your home, you may need buildings and contents cover. If you live in a leasehold property or rent your home, contents-only cover may be suitable, depending on who is responsible for insuring the building.
These averages are useful for broad context, but they won’t show what your own policy could cost. Your price will depend on your property details, cover choices and other factors.
To find out exactly what your home insurance will cost, get a personalised Direct Line Home Insurance quote.
Why average home insurance costs vary
You might see different average home insurance costs depending on the data source, the time period and the type of cover being measured. This could be because of a variety of reasons:
- Different types of cover are being compared. Combined, buildings-only and contents-only policies provide different types and levels of cover, so their figures shouldn’t be compared as though they measure the same product.
- Quotes vs policies bought. Quote data shows prices offered to customers, including quotes that may not become policies. Sold-policy data reflects the prices paid for policies customers went on to buy, so the two types of data aren’t directly comparable.
- Annual vs monthly figures. Check whether a published figure shows the premium for a full year, an individual monthly payment or the total amount paid through monthly instalments, as these aren’t necessarily the same measure.
- When the data was collected. Home insurance prices can change over time, so figures from different reporting periods should not be compared without considering their dates.
- Average vs median figures. An average is calculated by adding all the prices in a dataset together and dividing the total by the number of prices. A median is the middle price when all the prices are put in order. A small number of particularly high or low prices can affect an average more than a median, so the two figures may differ even when they come from the same dataset.
Why your quote may be higher or lower than the average
Because there are many factors that influence the cost of home insurance, your quote is unlikely to match the average exactly.
An average can be useful as a rough marker, but it won’t tell you what your own home insurance will cost. The only way to get an accurate price is to get a personalised quote based on your home, cover choices and circumstances.
Average cost by policy type
The type of policy you choose is one of the main things that affects the cost of home insurance. In general, the more your policy covers, the more it’s likely to cost.
Buildings and contents cover combined
This is typical homeowner insurance, covering the building you live in and the belongings you keep there.
With combined insurance, you could be covered for repairs to your home after a fire and for the cost of replacing your belongings damaged in the fire.
ABI average annual premium for combined buildings and contents policies bought in April to June 2026: £383
Buildings-only cover
Buildings cover insures the main structure of your home, so things like your walls and roof. Permanent fixtures, like kitchens and bathrooms, are also covered under a buildings-only policy.
This type of insurance won’t cover belongings, such as furniture, electronics and any other possessions.
ABI average annual premium for buildings-only policies bought in April to June 2026: £309
Contents-only cover
Contents insurance covers the things inside your home, from bookcases and beds to consoles and clothing. It doesn’t provide cover for structural parts of your home, such as your walls and roof.
You might consider contents-only cover if you already have buildings insurance, or if you rent your home and are responsible for insuring your own belongings.
ABI average annual premium for contents-only policies bought in April to June 2026: £118
What affects the cost of home insurance?
There are many factors that may affect the cost of home insurance. Some relate to your property and circumstances, while others depend on the cover and payment options you choose.
Where you live
The location of your home matters when it comes to insurance. Homes in areas with a higher risk of theft, flooding or other claims may cost more to insure than homes in lower-risk areas.
Size of your house
The size of a property can affect its rebuild cost and the amount of cover needed. This may be one of the factors considered when calculating a home insurance quote.
How close you are to water
Homes near rivers or coastlines are generally more expensive to insure because they have a higher risk of flooding.
Age and property structure
How buildings are constructed has changed over time. Older properties, non-standard construction materials and certain building methods can all affect the cost of repair or rebuild work, which may influence the cost of insurance.
Rebuild cost
The estimated cost of rebuilding your home may be one of the factors considered when pricing buildings insurance. This isn’t the same as your home’s market value and can include materials, labour and professional fees.
Value of your contents
The amount and type of contents cover you choose may affect the cost of your policy. Estimating the replacement value of your belongings accurately can help you choose a level of cover that reflects what you own.
Home security
Security features may be one of the factors an insurer considers when assessing a property. These could include the types of locks fitted to external doors and windows, as well as alarms.
Your lifestyle
Your circumstances can also affect the cost of home insurance. Factors like your age, whether you’re married with children, or if you’re away from home for long periods of time can all have an impact on your quote.
Previous claims
Your claims history can affect the price of your policy. If you’ve made a claim in the previous year, this could result in a higher premium.
How you pay
The total amount you pay may vary depending on whether you pay for your policy annually or in monthly instalments. With a Direct Line Home Insurance policy, you’ll be charged interest if paying monthly, meaning the total cost will be higher than paying the total cost up front.
Inflation
If the cost of goods and services goes up or down, this can affect the cost to repair your home and replace items, which in turn can affect the cost of home insurance.
Severe weather
Periods of extreme weather, such as prolonged cold snaps or heavy rain, can lead to more customer claims. A rise in claims could see insurers reassess the risk of future claims, which can affect the cost of home insurance.
Changes to Insurance Premium Tax (IPT)
Insurance Premium Tax is paid as part of the cost of home insurance. If the rate of IPT changes, this can affect the cost of cover.
Ways to manage the cost of home insurance
Reviewing the type and level of cover you need can help you understand what you’re paying for. Make sure any changes still leave you with cover that meets your needs.
Elements of your cover you should check include:
Buildings sum insured
This is the rebuild cost for your home, not its market value.
If something happens to your home and it needs to be rebuilt, buildings sum insured is the maximum you can claim.
You can use the rebuild cost calculator from the Building Cost Information Service (BCIS) to get an idea of the value you might need.
Contents sum insured
If something happens to your contents and they need to be replaced, this is the maximum value you can claim.
This might be an appliance, a bed or a bicycle. If it’s part of your home contents, not your landlord’s, then you need to factor the cost of replacing it into this sum.
Excess
This is the amount you pay towards any claim. While there are compulsory excess amounts which you can’t change, voluntary elements give you the ability to choose your contribution. Choosing to pay a higher excess will typically reduce the cost of your insurance, but you need to remember that your cost to claim will be higher.
Optional extras
These are add-ons to the core buildings and contents covers, including things like:
If you have any of these extras as part of your policy, you should think about if you still need them.
Check the cover as well as the cost
Average prices can provide a useful starting point, but they don’t show whether a policy is right for your home and belongings. When reviewing your options, look at the cover, limits, exclusions and excess as well as the price.
Find out more about Direct Line Home Insurance.
Home insurance cost FAQs
Is house insurance the same as home insurance?
Yes, the terms house insurance and home insurance mean the same thing.
What is the average contents insurance cost in the UK?
According to ABI premium data, the average price of an annual contents-only policy bought between April and June in 2026 was £118. This is a market average rather than a Direct Line price. What you pay may be higher or lower depending on factors such as the value of your belongings, the cover and excess you choose, your property and your circumstances.
Is home insurance legally required in the UK?
Unlike car insurance, it’s not a legal requirement to have home insurance. However, mortgage lenders will usually require buildings insurance to be in place so that the value of the property is protected.
There’s also the fact that without suitable home insurance, you’d have to foot the bill for any repairs or rebuild costs.
Why is my home insurance quote higher than the average?
The cost of home insurance will vary depending on the home being covered, its location, who owns the property, and a wide range of other factors.
While an average can be useful in providing a general idea, the reality is that you could be paying more or less than this figure.
Can I reduce the cost of home insurance?
Changing the makeup of your cover may reduce the cost of home insurance. This could include removing optional extras, increasing your policy excess or lowering your cover limits.
In making any of these changes, you should be sure the cover continues to meet your needs.
If you already have cover, it’s worth checking your policy documents or renewal information to make sure your cover still reflects what you need.
Is buildings and contents insurance cheaper together?
While a combined buildings and contents insurance policy may be cheaper than buying separate policies, this might not always be the case, as it will depend on your circumstances.
