UK home insurance
The cost of the average combined buildings and contents insurance policy is at its lowest point since 2012, with the average policy costing just £309, according to the latest research from the Association of British Insurers (ABI).
The ABI has noted a decrease in combined home insurance premiums, by £1 in the last three months and by £2 annually, meaning that buildings and contents insurance premiums are at their lowest level since 2012.
UK home insurance in the last year has remained competitive even while facing a number of obstacles that could have led to price rises across the industry, such as flash floods and a series of regional disasters. For example, the severe winter floods caused £175 million worth of damage to Cumbria alone. Prices have also remained low despite the recent rise in Insurance Premium Tax (IPT), by 3.5% in 2015, from 6% to 9.5%.
However, the ABI’s data shows that individual policies don’t seem to have benefited from the same drop. Buildings premiums now cost an average of £265, an £11 rise from last quarter (£254). Contents policies remain at an average £138, rising by £1 compared to the last quarter.
Even though premiums seem to be decreasing, it’s a good idea to shop around to make sure you’re getting the most competitive price – especially if you’re buying separate policies. But remember, the best insurance policy for you might not be the cheapest – it can help to review what’s covered and make sure that the policy meets your needs. The ABI even released a guide to help you to better understand your cover or you can use our site to find out more to help you make the right decision.
So why not start comparing now to see if we can get you a better deal?