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Home insurance renewal gone up? How to pay less

Home insurance renewal gone up? Why premiums rise, the FCA rules on renewal pricing, and how to cut the quote without cutting the cover.

By Semih Kavaklioglu · Last updated 16 August 2026

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A renewal letter with a higher number isn’t a decision — it’s an opening offer. Claim-free years, inflation-linked rebuild costs and index adjustments all nudge the figure up, and doing nothing accepts it.

The 30-minute renewal routine

  1. 3–4w
    Compare earlyQuotes are typically cheapest a few weeks before the start date, not the day before. Use at least two comparison sites plus one insurer that isn’t on them.
  2. 10m
    Check the numbers you’re quoting onRebuild cost (not market value), contents total, and the excess. Errors here quietly inflate every quote you get.
  3. 5m
    Call your current insurerTell them the best like-for-like quote and ask them to do better. They often can — and staying can be less admin if the price is close.
  4. 0
    Switch or stay — deliberatelyIf you switch, line the start date up with the old end date. If you stay, note next year’s renewal date now.

Where the real savings hide

  • Rebuild cost, not market value. The single most common overpayment. Your home’s sale price includes the land — you only insure the bricks.
  • Combined buildings + contents with one insurer is usually (not always) cheaper than two separate policies.
  • Voluntary excess — raising it £100–£250 often cuts the premium meaningfully.
  • Don’t double-insure: bank packaged accounts and some card benefits already include cover people pay for twice (gadgets, bikes, legal expenses).
  • Accurate security and occupancy details — approved locks and an alarm can help; guessing wrongly can invalidate claims.
Watch out. Never leave a gap between policies, even a day — if something happens that night you’re uninsured, and if you have a mortgage, continuous buildings cover is almost always a condition of the loan.
Good to know. This is general information, not personalised financial advice. Cover needs differ — check policy details and current prices before deciding.

In short

Compare 3–4 weeks out with the right rebuild figure, ask your insurer to beat the best quote, and change the excess deliberately rather than by default. Ten minutes of friction a year is what the renewal pricing model is betting you won’t spend.

Frequently asked questions

Didn’t the loyalty penalty get banned?

Partly. Since January 2022 the FCA requires insurers to offer existing customers the same price as an equivalent new customer. That killed the worst renewal walking — but premiums across the market can still rise, so comparing still pays.

What’s the difference between rebuild cost and market value?

Rebuild cost is what it would cost to rebuild your home from scratch — usually much lower than what you’d sell it for. Insuring the market value means overpaying for cover you don’t need. Your mortgage valuation or the ABI rebuild calculator can give a figure.

Will a higher excess always save money?

A higher voluntary excess usually lowers the premium, but only pick a figure you could genuinely pay on the day something goes wrong — an excess you can’t afford makes the policy useless for smaller claims.

Is it safe to switch insurers?

For home insurance, generally yes — unlike pet insurance there’s no pre-existing-condition trap for a typical home. Just make sure the new policy starts the day the old one ends, with no gap.

Related guides

Sources & last checked

Last checked against official sources: 16 August 2026.