Whether you're new to the UK or have always lived here, the cost of home insurance can be confusing. What's included can vary a lot. And so can the price.

As with all insurance, your quote is based on how likely insurers think you are to make a claim, and how expensive a claim could be if you do make one.

That means the price changes depending on your home, your belongings, the cover you choose, and a few details about you as well.

This guide gives you a sense of how much is home insurance in the UK, and explains what can push quotes up or down.

Key takeaways

• The average cost of combined buildings and contents insurance in the UK is around £384 per year, according to ABI data for Q3 2025.
• The average cost of contents insurance is around £132 per year.
• How much you pay depends on your property type, location, rebuild cost, and the level of cover you choose.

Average home insurance costs in the UK

There's no single standard price for home insurance, but industry reports can give you a helpful reference point.

According to The Association of British Insurers (ABI) the average cost of home insurance is:

• £379 for combined buildings and contents insurance
• £312 for buildings-only insurance
• £122 for contents-only insurance

These figures reflect average prices paid, not the cheapest quotes on the market. Many people pay less, particularly in lower-risk areas or when they choose a higher voluntary excess.

Compare the Market reports that in December 2025, 51% of customers using its platform were quoted less than:

• £199.13 for combined buildings and contents insurance
• £173.16 for buildings insurance
• £56.55 for contents insurance

If your quote is higher than these figures, it's likely that details about the property, location, or level of cover selected are pushing up the price.

How much is buildings insurance?

Buildings insurance covers the structure of your home, including walls, roof, floors, and fixed fittings like kitchens and bathrooms.

The average annual cost of buildings-only cover is around £312, according to the ABI. But this can vary a lot depending on:

• The rebuild cost of your property (not its market value)
• Your location and local flood or subsidence risk
• The age and construction type of the building

If you own your home and have a mortgage, your lender will usually require you to have buildings insurance in place. If you rent, your landlord is responsible for insuring the building.

How much is contents insurance?

Contents insurance covers the belongings inside your home, such as furniture, electronics, clothes, and appliances.

The average annual cost of contents-only cover is around £122, according to the ABI.

The main factor that affects your contents premium is the total value you choose to insure. It's worth going room by room and estimating the replacement cost of your belongings at today's prices, not what you originally paid for them.

If you rent, contents insurance is usually all you need. Your landlord is responsible for insuring the building itself.

How much is buildings and contents insurance combined?

Combined buildings and contents insurance covers both the structure of your home and everything inside it under one policy. The average annual cost is around £378, according to the ABI.

If you're a homeowner, a combined policy is usually the most straightforward option. It also means you only deal with one insurer if you ever need to make a claim that involves both the building and its contents.

Buildings insurance, contents insurance, or both?

A lot of people mix these up at first, especially if they're renting.

• Buildings insurance covers the structure of the home, including walls, roofs, and permanent fixtures.
• Contents insurance covers your belongings inside, furniture, electronics, clothes, and so on.
• Combined cover includes both buildings and contents together.

If you rent, you'll usually only need contents insurance. Your landlord typically insures the building. If you own the property, you may need buildings cover, and many people add contents too.

You can read more about the difference in our guide to buildings and contents insurance.

Why your quote might be higher or lower

Several details feed into your final home insurance quote.

Rebuild cost, not market value

For buildings insurance, the rebuild cost matters more than the property price. A home can be worth a lot on the market but still have a relatively "normal" rebuild cost, or the other way around. If the rebuild estimate is high, the quote often rises with it.

How much contents cover you choose

For contents insurance, the amount you insure is a direct driver of price. If you set the figure very high "just to be safe," you may pay more than you need to. A good check is to think about the replacement cost today, not what you paid years ago, and not sentimental value.

Location and local risks

Your postcode makes a difference, because insurers price for things like local burglary rates and flood exposure. Severe weather, including storms and floods, has increased claims costs in recent years, which can push premiums up.

Property age and construction

Older homes, listed buildings, and unusual construction materials can cost more to insure. Repairs can be more specialist, and sometimes more expensive.

Claims history

If you've claimed before, some insurers will price for a higher chance of a future claim. If you've gone a few years without claiming, you may build up a no-claims discount, which can help bring costs down.

Is home insurance more expensive if you're new to the UK?

Sometimes home insurance can be more expensive if you're new to the UK because many insurers lean heavily on UK-based history when pricing.

If you've only recently moved, you might not have much UK insurance or credit history yet. That doesn't mean you're higher risk, but it can affect the price you'll get with some providers.

At Marshmallow we do things differently. With home insurance built for those new to the UK, we look at different factors to give you a fairer price.

Find out more about Marshmallow home insurance.

A realistic way to estimate your home insurance cost

If you want a home insurance quote that reflects your situation, it helps to have a few things ready:

• Your postcode
• Property type (flat, terraced, semi-detached, detached)
• Details about your property
• A sensible contents value
• Any previous claims, if applicable

You don't need to get everything perfect, but better inputs usually give you a more accurate price.

Summary: how much is home insurance

Home insurance in the UK doesn't have a single standard price. What you pay depends on your home, your location, the cover you choose, and your past claims.

For a quick reference:

• Combined buildings and contents: around £378 per year on average
• Buildings only: around £312 per year on average
• Contents only: around £112 per year on average

If you're looking to reduce your insurance cost, find out more about our home insurance and get a quote today.

Frequently asked questions

How much is home insurance on average in the UK?

The average cost of combined buildings and contents insurance is around £378 per year. Contents-only cover averages around £122 per year.

How much does home insurance cost per month?

Combined buildings and contents insurance works out at around £32 per month on average. Contents-only cover averages around £11 per month. Paying annually is often cheaper than monthly.

Is home insurance mandatory in the UK?

No, home insurance is not a legal requirement. However, if you have a mortgage, your lender will almost always require you to have buildings insurance in place.

How much should I insure my contents for?

Add up the replacement cost of your belongings at today's prices, going room by room. Don't include sentimental value or what you originally paid. The average UK household owns around £52,000 worth of possessions, according to MoneyHelper.