You are here: Home - Insurance - News -

Home insurance costs at lowest level in four years

0
Written by: Paloma Kubiak
18/08/2016
The average cost of a combined home insurance policy now stands at just over £300, data from the three months to June reveals.

Despite the severe winter flooding which is expected to cost £1.3bn, insurers have kept home premiums at competitive levels, according to the Association of British Insurers (ABI).

Its latest Home Insurance Premium tracker showed the average combined buildings and contents insurance policy costs £309, its lowest level in the four years since the ABI started collecting data.

This is a £1 decrease compared with the previous quarter and a £2 fall on the same quarter last year.

Buildings only policies cost an average of £265, an increase of £11, or 4%, compared with the previous quarter, when it was £254. This is in line with similar increases seen between Q1 and Q2 in previous years.

Contents only policies cost an average of £138, a slight increase of £1 since Q1 2016.

Mark Shepherd, ABI general insurance manager, said: “As seen during the severe winter floods, home insurance provides valuable protection from events that can force people out of their homes and destroy their belongings.

“So it’s good news that homeowners are making the most of a very competitive home insurance market by shopping around to get the best deal that meets their needs. Our recent guide on ‘Home Insurance’ can help customers understand the different policies available to get the right level of cover, which may not be the cheapest.”

He added that home insurers have also continued to offer competitive deals despite the recent increases in Insurance Premium Tax, a tax levied on insurers but often passed down to customers.

“Home insurance is essential to protect people’s homes and possessions, so in order for competitive prices to continue, it is imperative that any further moves that could increase the cost are avoided,” said Shepherd.

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

The savings accounts paying the most interest

It’s time to get your finances in shape, and moving your cash savings to a higher paying deal is a good plac...

Everything you need to know about being furloughed

Few people had heard of ‘furlough’ before March 2020, but the coronavirus pandemic thrust the idea of bein...

The experts’ guide to sorting out your personal finances in 2021

From opting to ‘low spend’ months to imposing your own ‘cooling-off period’, industry experts reveal t...

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Money Tips of the Week