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Cost of home insurance falls

Joanna Faith
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Joanna Faith

The cost of home insurance fell by 6 per cent in the year to June, according to data from market research firm Consumer Intelligence.

Just over a third of this fall occurred in just two months – between April and June – when the average of the lowest five premiums fell by 2.3 per cent.

Overall, the average of the five most competitive home insurance policies in June was £115, a reduction of £13 a year earlier.

Consumer Intelligence’s Switching Index, based on responses from more than 11,000 home and motor policyholders, showed 35 per cent of home insurance customers switched in the year to May.  Half (50 per cent) did so to benefit from lower premiums.

Ian Hughes, chief executive of Consumer Intelligence said: “This fall in premiums can be explained by a big reduction in burglaries, and far fewer claims for flood and storm damage.

“In 1995, just under 9% of homes suffered from a burglary compared to a little under 3% last year. Those switching home insurers this year could see significant savings.”