Cost of home insurance falls 6%

28th January 2015

The cost of home insurance has fallen by 6% for buildings cover and 5% for contents over the last year, new figures reveal.

The average annual premium paid for building insurance was £230 or £4.43 a week,according to the  Association of British Insurers (ABI) latest premiums tracker published today.

This was down 4% on the previous quarter and a fall of 6% over the year since quarter 4, 2013.

For contents insurance, the average annual premium paid was £124, or £2.38 a week. This was 4% less than the previous quarter and down 5% over the same quarter a year ago.

During the fourth quarter of 2014, the tracker shows the average annual premium paid for a combined buildings and contents policy was £291, or £5.60 a week. This was down 1% on the previous quarter and fell by 3% over the year.

Mark Shepherd, the ABI’s manager of general insurance, said: “There is no substitute for home insurance. Last winter’s floods dramatically highlighted the value of insurance, with insurers dealing with over 13,000 claims from flooded property owners. With the average domestic theft claim of £1,600, and average cost of dealing with subsidence running at £6,900 home insurance is outstanding value for money.

“The expertise of insurers in assessing, planning and pricing for unwelcome events, such as bad weather, ensures that millions of families are  benefitting from very competitively-priced home insurance that is protecting them from many of life’s unexpected and unwelcome events.”

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