Home insurance Updated:
Want to save money on your home insurance? Well, it could be easier than ever, with research from the Association of British Insurers (ABI) revealing that the cost of home insurance is continuing to fall.
The figures, taken from the ABI's latest Quarterly Average Household Premium Tracker, show that the average cost of a combined home insurance policy from April to June was just £288 a year – or £5.54 a week – the same as the first three months of the year and down 2% on the same period a year ago.
Combined policies account for nearly three-quarters of household premiums so the majority of customers will benefit from this kind of price cut, but those who have individual policies could be noticing a different pattern.
For example, the average annual premium paid for a buildings only policy was £238 (or £4.58 a week), up 5.3% compared with the first three months of the year but a 1.2% decrease from the same time a year ago. Contents only insurance has witnessed a similar pattern, with the average annual premium (£125, or £2.40 a week) being up 4.2% on a quarterly basis but down 5.3% compared with a year ago.
Mark Shepherd, the ABI's General Insurance manager, commented: "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."
However, much like in the car insurance market, there are concerns that this run of falling prices won't last forever. Again, much of it comes down to the increase in insurance premium tax – as outlined in the Chancellor's Summer Budget, this tax will increase from 6% to 9.5% from November, and that rise will be passed on to customers, as Shepherd added:
"UK consumers benefit from a competitive home insurance market to ensure affordable priced protection for their homes, 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."
So, if it's time to renew your policy, now could be a great time to see what's out there. Home insurance can provide a life-line should the worst happen and will mean you won't need to let financial concerns add to the emotional impact of a fire, flood or theft, so take advantage of the competitive market and see if you can reduce your premiums for peace of mind and added financial benefit.
Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.
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