According to recent research, the relatively mild winter that the UK has experienced this year has led to a fall in the cost of home insurance. The latest British Insurance Premium Index shows that the average quote for a buildings and contents insurance policy fell by 3.6% in the first quarter of 2015. An annual home insurance policy now costs on average £158.66, a decrease of £6. Over the last 12 months, the typical quote for a combined policy fell by 9.6%, which equates to nearly £17.
Reduction in Home Insurance Claims
The winter of 2014-2015 has been, on the whole, fairly mild. The UK hasn’t seen huge weather extremes, such as heavy snow, heavy rain, strong winds or particularly extreme temperatures, therefore home insurance premiums have fallen to reflect this. Fewer storms have resulted in a reduction in the number of claims being made on home insurance policies, allowing insurers to reduce premiums as they absorb the costs.
The Average Household Premium Tracker Report
The Association of British Insurers also report that the cost of home insurance is on the decline, according to their quarterly Average Household Premium Tracker report. This report collates information provided by members of the Association of British Insurers on the price of household buildings, contents and combined insurance. Mark Shepherd, the ABI’s general insurance manager said: “There is no substitute for home insurance. With the average domestic theft claim of £1,600, and average cost of dealing with subsidence running at £6,900 home insurance is outstanding value for money.”
The Competitive Home Insurance Market
The desire to compete in the competitive home insurance market has also contributed to the fall in the cost of home insurance. Home insurance companies are fiercely competing for the market share by offering discounts and introductory offers for new customers in an attempt to win business. But it is worth noting that not everyone will have benefitted from the fall in home insurance premiums, as regional differences and homes that are at risk of flooding will still be paying premiums that are higher than average. So shopping around for home insurance is a great way to ensure that you get the best deal!
Find a Low Cost Home Insurance Policy
As Mark Shepherd from the ABI quite rightly points out, home insurance is very good value for money and well worth taking out to ensure that your home and its contents are protected. As well as providing you and your family with financial security, home insurance is also great for peace of mind, as you can be safe in the knowledge that you have the appropriate protection in place should you need it. To find a home insurance policy that is right for your home at the cheapest price possible, why not try using a home insurance quote comparison service? Find a low cost home insurance policy today with City Insurance.