Do we pay more for home insurance than our neighbors in the UK?

There’s welcome news across the Irish Sea: in the Compare the Market dataset for the UK, average home-insurance premiums fell by approximately 13 % year-on-year in September 2025, dropping from about £226 in 2024 to £197 in 2025. 

This naturally prompts the question: Is the same positive trend playing out in Ireland? A closer look at the Irish market reveals a rather different story, and what that means for Irish homeowners deserves attention.

Should Irish homeowners be more concerned about the cost of home insurance, or not?

UK: A Drop in Premiums, A Rare Breather

The UK decline is noteworthy. According to the Intermediary article, the 13 % drop was seen across multiple regions, though notably not in Northern Ireland, where premiums still rose.A number of factors likely contributed: heightened insurer competition, a possible easing of extreme claim pressures, and perhaps better pricing discipline.

For UK homeowners, this is potentially a respite in a market long buffeted by inflationary repair costs, extreme weather claims, labour/materials cost pressures and supply-chain disruptions.

Ireland: Premiums Still Rising

By contrast, in Ireland the evidence points not to falling premiums but to ongoing increases. Here are some key data points:

• In the year to January 2025 the Irish Government noted that home-insurance prices were 8 % higher year-on-year.
  

• From insurer FBD Insurance: in H1 2024 home-insurance premiums rose 11.5 % year-on-year.
  

• A blog from AA Ireland spells out the cost pressures: “inflation, building-cost increases, storm risk, crime risk” all driving premiums up.
  

• The Society of Chartered Surveyors Ireland warns rebuilding costs have gone up significantly (timber +64 %, plaster +30 %, glass +10.7 % last year) – factors that feed directly into what insurance companies must pay out.
  

In short: Irish consumers are not yet benefiting from a decline in home-insurance costs. The “drop in the UK” phenomenon has not translated into the Irish market — at least not so far.

Why the Divergence?

Several structural and situational differences help explain why the UK is seeing relief while Ireland is not:

1. Cost-inflation differences: Building and labour costs in Ireland continue to rise at a steep pace, and this directly impacts insurers’ cost bases.

2. Storm, flood and claim pressures: Ireland’s exposure to weather risk (storms, water infiltration, rising rebuilding cost) remains high, increasing claims and pushing premiums upward.

3. Market competition & scale: The Irish home-insurance market is smaller and may have fewer avenues of competition or price erosion than the UK, meaning cost pressures get passed on more readily.

4. Lag effects: Even if cost pressures ease, it takes time for insurers to adjust pricing. The UK may be further down the cycle of “claims inflation + cost inflation” than Ireland.

5. Risk-profile differences: Irish homeowners may have higher sums insured relative to rebuild cost, or live in riskier zones (flood-prone/coastal) than typical UK averages.

What It Means for Irish Homeowners

For someone living in Ireland, the message is: don’t assume premiums will fall any time soon — quite the opposite. You should act as if costs will continue rising, and adopt a more proactive approach:

• Shop around: Don’t simply renew without comparing other insurers — rates vary, and switching may save you.

• Review your “sum insured” and rebuild cost: Many homeowners are under-insured; the rebuild cost of your property may have risen faster than your cover.

• Strengthen resilience and risk mitigation: Investing in good home security, flood protection, and proper maintenance will help your risk profile and may reduce premiums.

• Ask about excesses, cover levels, and exclusions: Higher voluntary excesses can lower premiums, but you must ensure coverage remains adequate.

• Be alert to emerging regulatory/regime changes: The Irish Government is working on an insurance-reform action plan to boost transparency and competition.
  

While UK homeowners are seeing some welcome relief with a 13 % drop in average home-insurance premiums, Irish homeowners continue to face headwinds. Premiums are rising, not falling, and the broader context of inflation, rebuilding cost, climate risk and market structure means we may yet face higher home-insurance bills ahead.

For Irish homeowners: treat the insurance renewal process as a genuine financial review—not just another bill to pay. Given the stubborn upward pressure on costs here, vigilance in your policy, cover details and insurer choice remains key.

It’s a reminder that cost savings in home insurance aren’t guaranteed—they must be earned through market comparison, risk reduction and staying informed.

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