If you’re new to the UK, home insurance can be one of those “I probably need this, but what should it cost?” topics. It’s also one where the numbers can look confusing, because quotes vary a lot.

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 realistic sense of typical UK costs, then explains what can push quotes up or down.

If you want to check your own price, explore Marshmallow home insurance.

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. Using ABI data, MoneyHelper reports that the average annual premium is:

• £375 for combined buildings and contents cover
• £298 for buildings-only cover
• £132 for contents-only cover

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
• £173.16 for buildings-only cover
• £56.55 for contents-only cover

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.

Buildings, contents, or both - what are you actually pricing?

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 is 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 why you might need both building and contents insurance.

Why your quote might be higher

Several details feed into the cost, but these can impact your final home insurance quote.

Rebuild cost (not the 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. MoneyHelper notes that severe weather, including storms and floods, has increased claims costs, 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 ‘high 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.

A realistic way to estimate your own 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

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.

If you’re new to the UK and want home insurance built for your needs, you can find out more about our home insurance here.