Defaqto data shows average premiums for combined buildings and contents insurance dropped by 2.4% during Q3 and were 4.4% lower in September 2026 than they were a year earlier. They are down by 16.9% over the last 24 months. Defaqto takes the average of the five most competitive quoted premiums.

In the most recent quarter, premiums fell by 1% in July, 0.9% in August and 0.4% in September. There is significant variance between providers and during the year to September, price movements range from a reduction of 20.2% to an increase of 12.1%.

Stephen Kennedy, director at Defaqto, said: “Competitive home insurance premiums are almost 17% below their level two years ago and are still falling. That creates a difficult balance for insurers when inflationary pressures and uncertainty over claims costs remain.

“Weather-related claims are a particular concern for home insurers. Subsidence following dry, hot summers can take time to emerge, while flooding and storms add further uncertainty. Pricing decisions need to account for claims that may develop over time, as well as those already being reported.”

Although the latest data does not correlate to a change in direction in premium pricing, Defaqto suggests prices may level out or even rise in Q4.