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Cost of home insurance falls

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Home insurance premiums have fallen in the last year as a result of the Covid pandemic, however the dip could be temporary as the economy opens up.

Average home insurance premiums fell by 5.6 per cent in the last 12 months and 6.4 per cent since their peak in June 2020, according to data analytics firm Consumer Intelligence.

The average buildings and contents policy now stands at £144, the firm said.

However, it expects premiums to begin to rise as the country begins to fully reopen and fewer people work from home – but only slightly.

“The home market is already a very competitive space which keeps premium increases largely at bay,” said Harriet Devonald, product manager at Consumer Intelligence.

Younger people continue to fork out slightly more for their home insurance.

An under-50s homeowner typically hands over £151 for an annual buildings and contents policy, while the over-50s now pay £134 for similar insurance.

Londoners pay the most for their home insurance at £202 on average. The South East (£154) and Yorkshire and the Humber (£150) are the only two other regions where an annual policy is more expensive than the national average of £144.

The North East (£113) remains the cheapest region, with the East Midlands (£124) and the South West (£130) following closely behind.

Older homes continue to attract higher insurance premiums, reflecting the higher cost of claims made by their owners – with roofing, plumbing, and wiring in these properties more likely to develop faults, and with replacement materials expensive to source

Homes built in the 19th century, typically attract premiums of £169 for an annual policy. Properties erected this century are the cheapest to insure at £133.

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