Building Insurance Cost Calculator
This building insurance cost calculator gives an indicative premium starting from the UK average: buildings-only cover cost £306 a year on average in early 2026, according to the Association of British Insurers. It then adjusts for your rebuild cost, property type, flood and subsidence risk, claims history and excess. Your real quote depends on the insurer.
- Average buildings-only premium£306
- Average combined policy£375
- Average subsidence claim£17,820
Updated November 2026 · Based on ABI average premiums for early 2026
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Average buildings insurance cost in the UK
The Association of British Insurers tracks what customers actually pay. In the first quarter of 2026 the averages were:
| Policy type | Average annual premium (Q1 2026) |
|---|---|
| Buildings only | £306 |
| Contents only | £117 |
| Combined buildings and contents | £375 |
The average household claim paid was £6,340, rising to £17,820 for subsidence.
What affects the cost of buildings insurance
- Rebuild cost: the sum insured is the cost of rebuilding from scratch, including demolition and professional fees, not the market value.
- Location: flood risk, subsidence-prone clay soils and local crime rates all affect the price.
- Property: size, age, construction (thatch or timber frame cost more) and listed status.
- Claims history: recent claims usually raise premiums for several years.
- Excess: agreeing a higher voluntary excess lowers the premium but means you pay more of each claim.
Flood Re and high-risk homes
Flood Re is a scheme run jointly by the government and insurers that helps homes at high flood risk get affordable cover. It applies to most homes built before 1 January 2009. Newer homes are excluded because they should have been built with flood risk in mind. Check your long-term flood risk on GOV.UK.
How this calculator works
We start from the ABI average buildings-only premium of £306, scale it by the square root of your rebuild cost against £250,000, and multiply by simple factors for property type, flood risk, subsidence, claims and excess. The result is a guide to the likely level, not a quote. Compare several insurers or use a broker, and do not under-insure your rebuild cost to save money, because claims can be reduced proportionately.
Frequently asked questions
How much is buildings insurance on average in the UK?
The ABI average for buildings-only cover was £306 a year in the first quarter of 2026. Combined buildings and contents averaged £375.
Is buildings insurance based on rebuild cost or market value?
Rebuild cost. That is the cost of rebuilding the home from scratch, which is often lower than its market value because it excludes the land.
Do I need buildings insurance?
It is a condition of almost every mortgage. If you own outright it is not compulsory, but without it you would pay for any rebuilding or major repairs yourself.
Do flats need buildings insurance?
Usually the freeholder or management company insures the whole building and recharges leaseholders through the service charge, so you may not need your own buildings policy.
Does a higher excess reduce buildings insurance?
Yes. Agreeing to pay more of each claim yourself usually lowers the premium, but make sure you could afford the excess if you claimed.
Sources and method
We use official UK guidance and recognised formulas, and test each calculator against worked examples. Results are estimates to help you plan, not professional advice. See how we work.