Home Insurance Premium 5 Year Low

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.

The national reduction of almost 30% is said to be due in part to an increase in competition between providers, and also because of a decrease in claims for both weather damage and burglary. The percentage of homes in England and Wales that were victims of domestic burglary fell from 8.7% in 1995 to 2.7% in 2014. Claims for flood and storm damage have also fallen recently due to the mild winter in 2014-15. The average price for home insurance has fallen even in the areas with the worst records for claims, such as Harrow in north-west London. Whilst it is still the most expensive area, the average yearly premium in Harrow has been reduced from £214 to £182 over the last five years. The only exception to the fall in prices is Bolton in Lancashire, where premiums have gone up by £10 during the last year, however average prices in the area are still £54 cheaper than they were in 2010. The largest price drop, of £19 in a year, occurred in Kingston-upon-Thames, although at £135 a year they are still 16% above the national average. Unsurprisingly, given the higher cost of living in the capital, postcodes in London are amongst the highest premiums. Harrow is followed by Ilford, where premiums are £158.21, and London North West, with an average cost of £155.72.

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.