Today many people are cutting down on luxuries in order to pay for essentials, the cost of which seem to be constantly rising. However there is good news for those on a tight budget; average home insurance premiums are now at a five year low. MoneySupermarket.com claims that the typical British home now costs just £116 a year to insure. According to the comparison website, who analysed 2.6 million customer quotes, this is a drop of £44 from the average price in the spring of 2010. People living in the cities of Norwich and Salisbury are currently benefiting from the lowest average premiums in the UK, both of which have annual house insurance costs of just £100.70. Dorchester and Dumfries are the next cheapest, at £101.16 and £101.24 respectively. However Kevin Pratt of MoneySupermarket.com has suggested that many households all over the country are overpaying due to auto-renewing their insurance rather than obtaining a new quote each year, despite the overall fall in market rates.
While legally it is not compulsory, home insurance is an essential cost that shouldn’t be avoided. In the case of a fire, storm, or burglary, those who are uninsured could face losing all their possessions, which few could afford to replace. Some policies also have accidental damage cover, or personal possession cover for outside the home, although this is often an added extra and increases the cost of the quote. The overall falling cost of insuring your belongings is good news for everyone.