Home insurance Updated:
Forking out for buildings and contents insurance can seem like a drain on your finances, but recent figures show that the cost of premiums has actually remained fairly stable, with the average annual cost of protecting your home being less than the price of a satellite TV package.
According to ABI's Average Quarterly Household Insurance Premium Tracker, published yesterday, the average annual cost of home insurance premiums has stayed at a similar level to last year, despite rises in the cost of some claims.
From July to September this year, the tracker showed that the average premium for a combined buildings and contents policy was £294, which is 1% lower than the average premium during this period last year. This is a surprising decrease, as the tracker also found that the average cost of a household insurance claim over the period had risen by 12%, costing around £1,500.
Contents insurance premiums also witnessed a 1% fall from last year, with the average costing £127 during the three-month period. This figure is a drop in the ocean compared to the value of contents insurance claims made – over the last year, claims for theft cost around £1,700, and the average claim for fire damage was a staggering £11,000.
Meanwhile, the average building insurance premium bought during the three months from July was £231. This was a small increase from 2013, when the premium was 2% lower. However, this increase appears marginal when it is considered that the value of the average subsistence claim made over the last year has been £5,400, which is 12% higher than the value of this claim made in 2013.
Paying out for insurance can often seem expensive, or maybe even unnecessary, but these figures suggest that insurance premiums would offer value for money should you need to make a claim, as well as providing you with peace of mind that you would not be left out of pocket should the worst happen.
"Home insurance is a shock absorber, protecting millions of families against the unexpected and unwelcome. Despite volatile events, such as bad weather, the cost of cover for millions of customers has remained reassuringly stable," commented Aidan Kerr, head of property insurance at ABI. "The £294 paid for buildings and contents cover is less than the price of a typical satellite TV package, or what the average family spends on takeaway meals, and enables families to get on with enjoying life, rather than being at the mercy of it."
So, if you have left your home undefended against man and nature due to cost, now may be a good time to reassess. Now that winter is firmly on its way, it's a good idea to make sure you have the insurance to protect your home against the winter weather and any opportunists seeking a quick buck. Start looking at your options by checking out our home insurance comparison tool. Once you've found the right deal, you can get your home insured and rest easy that the bill will be covered no matter what trials winter throws your way.
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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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