Insurance is a very useful thing indeed. And amid all the talk of rising car insurance prices, it’s good to know that there’s one thing you won’t have to cough up even more money for – and that’s your home insurance. Because the ABI (Association of British Insurers) has published figures that show combined home contents and buildings cover cost less in 2016 than it did the year before.

The overall cost of a combined home insurance policy was £306 in 2016 – that’s a drop of 2% from the year before. The trend was reinforced as the last quarter of 2016 (October, November, December) showed an even bigger drop of 3% with combined polices down to an average of £298, compared to the previous three months.

The data collected by the ABI is compiled in their ‘Quarterly Household Premium Tracker’ – also referred to (rather ominously) as ‘the Tracker’. But although the Tracker showed that premiums for separate buildings and contents policies fell in the last quarter (average buildings insurance policy falling by 2% to £266 whilst the average price paid for a contents only policy fell 1% to £139) compared to the quarter before; they actually increased overall in 2016 compared to 2015 by 5% and 3% respectively.

But whilst it’s one bit of good news for consumers, let’s not forget what home insurance is actually for – protecting your home. So, it’s all very well getting your mitts on cheap home insurance, but if your policy’s not fit for purpose then at the end of the day (or start of a claim) it’s probably as much use as a chocolate teapot.

It’s important to really think about what you need and what’s important to you, from covering jewellery, gadgets or even accidental damage. And don’t forget, that your policy should also reflect your own, unique circumstances, such as if you live in a ‘non-standard home’ or in a high risk flood area.

Luckily, at comparethemarket.com, we’re here to help, you just need to tell us what you need and we’ll do the searching for you. And it doesn’t matter if you’re renting or if you’re an old hand at the property game and need insurance for your second home, the perfect policy for you is out there – so let’s start comparing.

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