The ABI’s latest Quarterly Average Household Premium Tracker shows the average annual premium for a combined buildings and contents policy currently stands at £288, or £5.54 a week. This is the same as the previous quarter, and down 2 per cent compared to the same quarter last year. Combined home insurance policies account for nearly three quarters of household premiums.

The average annual premium paid for a ‘buildings only’ policy was £238, or £4.58 a week. This is a 5.3 per cent increase compared with the first quarter of 2015, but a 1.2 per cent decrease from the same quarter a year ago.

For contents only insurance, the average annual premium paid was £125, or £2.40 a week. This is up 4.2 per cent on the first quarter of this year, but is down 5.3 per cent compared to a year ago.

Mark Shepherd, general insurance manager of the ABI, said: “When the worst happens, home insurance is a lifeline. If a home is flooded or catches fire, families can lose personal possessions within minutes or sometimes be left without a roof over their head. Home insurance helps millions of people every year cope with what can be a very traumatic event and makes sure they have somewhere safe to stay.

“The cost of this essential protection for homes and belongings remains stable, meaning people can on average insure their homes and belongings for less than the daily cost of a litre of milk, giving them vital peace of mind.

“UK consumers benefit from a competitive home insurance market, but with an increase in insurance premium tax adding £9.48 to the average premium from November, this will mean a further increase in costs for customers.”

For further information on contents insurance, click here to view the YourMoney.com guide.

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