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FCA pricing rules: what they mean before your home insurance renews

A dated note on how FCA general insurance pricing rules apply to home renewals and why the renewal date remains the household's review point.

Published January 2026

What changed

The FCA's general insurance pricing rules apply to buildings and contents insurance as well as motor. The renewal price must be no higher than the equivalent new-customer price from the same insurer through the same channel.

Underwriting changes, claims history and rebuild costs are still recalculated at the renewal date, so the renewal premium reflects more than just the comparison with new-customer pricing.

What it means before the renewal date

The renewal date is when the recalculated premium is set and when auto-renewal is scheduled. It is also when sums insured can be confirmed against the current value of the building and contents.

The household's own review window sits between the renewal notice landing and the renewal date — not after. Once the auto-renewal runs, the new twelve-month policy is in force.

What to do now

Check the renewal date and the new premium against last year's premium.

Check that the sums insured still reflect rebuild and contents value.

Check whether the policy is set to auto-renew.

Sources

  • FCA — General Insurance Pricing Practices (PS21/5). FCA rules require renewal prices for home and motor insurance to be no higher than the equivalent new-customer price from the same insurer through the same channel.
  • FCA — A new Consumer Duty (PS22/9). Firms must act to deliver good outcomes for retail customers across the product lifecycle, including renewal.

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