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Home insurance for less than the price of a coffee

Home insurance for less than the price of a coffee

Category: Home insurance

Updated: 29/04/2015
First Published: 29/04/2015

This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

You want to protect your home, but you don't want to spend a fortune in order to do it. Happily, you don't have to – research from the Association of British Insurers (ABI) has revealed that the cost of home insurance continued to fall during the first three months of the year, meaning the average combined policy now costs less than the price of a takeaway coffee.

The figures, from the ABI's latest Quarterly Average Household Premium Tracker, show that the average annual premium paid for a combined buildings and contents insurance policy was £287 in the first quarter of the year, down 1% from the final three months of 2014 and a drop of 2% year-on-year.

This equates to a typical cost of £5.52 a week, or just 79 pence per day. This is far less than the price of a coffee – it's a small price to pay for knowing that your home and everything within it is completely covered, and if you sacrificed that daily coffee and saved the money instead, you'll have the funds you need in no time.

Prices for individual policies have fallen, too: the average annual premium for buildings insurance now stands at £255 (£4.33/week), down 3% on both a quarterly and annual basis, while the typical contents policy will now cost £118 per year (£2.27 per week), down 5% from the previous quarter and an impressive 8% lower than the same time a year ago.

Mark Shepherd, the ABI's General Insurance manager, commented: "The scale of loss people suffer if their home is flooded or catches fire can be almost unimaginable. Some families lose not only the roof over their heads but also most of their personal possessions in a matter of minutes. When the worst happens, home insurance is a life-line. The cost of this vital protection has continued to fall, meaning people can on average insure their homes and belongings – and give themselves peace of mind – for less than the cost of a cup of coffee a day."

It becomes even more worthwhile when you look at how much the typical claim can cost. According to ABI's figures, the average insurance payout for flood damage during the 2013/14 winter floods was around £30,000, with insurers dealing with 18,700 claims for flooding and nearly 450,000 for storm damage during that time. Claims for other perils can also be sky-high, with an average claim for domestic fire damage being £11,000.

It's these types of figures that make you realise how important suitable home insurance can be, and that's before the emotional impact is taken into account. "The expertise of insurers in planning for such events and competition within the sector is ensuring millions of families can benefit from affordably priced protection for their home and their possessions," added Mark, so make sure to compare home insurance quotes and get the peace of mind you need.

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.