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Home insurance premiums fall to six-year low

Paloma Kubiak
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Paloma Kubiak

The cost of insuring your home has fallen to a six-year low new research has revealed.

The average home insurance premium has fallen 12% in a year, meaning prices are at their lowest since 2010, MoneySuperMarket research shows.

Its analysis looked at seasonal home insurance quotes from across the UK and it looked at postal towns which saw the largest and smallest price drops.

Overall, prices fell by £7 – a 6% drop for winter 2015/16 compared to winter 2014/15. Premiums across the UK now stand at £109 on average for combined buildings and contents cover.

Postcode lottery

Homeowners in Shrewsbury have benefited from the largest year-on-year price drops, with average premiums falling 12% (£13.28 on average). Those in Dudley have also seen 12% decreases, with the average policy dropping by £13.19 from £112 to £98.

Galashiels and Dundee are also among the locations which have seen the steepest falls in premiums, along with Carlisle, Salisbury and Dorchester.

But homeowners in Enfield have seen premiums rise by 3% over the past year, resulting in premiums that are 27% higher than the national average. MoneySuperMarket stats show premiums in the winter of 2014/15 were £134, rising to £137 during the last winter.

Those in Cambridge, Hereford, North West London, West London and Twickenham have also seen prices increase over the last 12 months by around 1%.

Switch and save more

Kevin Pratt, consumer affairs expert at MoneySuperMarket, said: “With the exception of a few postcodes, premiums have been reducing steadily for six years now, thanks mainly to falling burglary rates. This could mean great savings for consumers, but only for those who shop around at renewal to find a better deal.

“Those who have never switched insurer – and who are likely to have seen their premiums increase over the years – stand to save the biggest amount.

“Whether the area you live in has seen home premiums rise or fall, it’s always worth shopping around at renewal time to see what better deals are available. Insurers reserve their best prices for new customers, making shopping around at renewal a no-brainer.”

Pratt added that you could save around £60 by switching providers so “it’s worth taking advantage of the low premiums while they’re available.”