Home insurance Updated:
The cost of the average combined buildings and contents insurance policy is at its lowest level in four years, the Association of British Insurers' latest Home Insurance Premium tracker has revealed, with a typical policy currently costing just £309.
This is despite the severe winter floods the UK experienced just a few months before, which are expected to cost £1.3bn. Even so, home insurance premiums remain competitive, and have actually fallen by £1 in the last three months and by £3 year-on-year. As a result, the combined average premium is at its lowest level since the ABI began recording this data in 2012, making it a great time for homeowners!
However, it's worth noting that the benefits only apply to combined policies, as premiums for individual levels of cover have actually edged up. For example, buildings only policies now cost an average of £265, an increase of £11 (or 4%) from the previous three-month period, while contents only policies cost an average of £138, up £1 over the same period.
"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," said Mark Shepherd, ABI General Insurance manager. "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."
He pointed out that home insurers have continued to offer competitive deals, despite the recent increase in Insurance Premium Tax – something which can't be said for all sectors of the insurance market. "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," he added.
For the time being, the market is definitely looking positive for consumers, so why not make the most of it? Shop around to find the best deal, but just make sure to really consider all the available options to ensure you've got the right level of cover – and remember, the right policy may not always be the cheapest.
Price will of course be important, but making sure you're adequately protected is even more so, which is why carefully comparing the features of each policy is essential. Start the process by heading to our home insurance quote tool, and see if you can find the policy that meets your needs as well as your budget.
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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