The average cost of combined buildings and contents home insurance policy was estimated at £310 in the first quarter of this year, according to the Association of British Insurers’ (ABI) latest home insurance premium tracker.
The current level equals the lowest quarterly average premium price since the start of 2012, when the ABI began collecting data. The average building-only policy costs £255, while the average contents policy costs £136. Both were virtually unchanged from the previous quarter.
The current average of £310 is £4 lower than the final quarter of 2015, and unchanged from the first quarter of last year. Usually, home insurance premiums fall during the first quarter, but this reduction came despite severe flooding in December and increased tax rates in November. The flooding resulted in almost 10,000 claims from homeowners.
James Dalton, ABI’s director of general insurance policy said: "The severe flooding last winter highlighted why home insurance is so important, and the work continues to help those most badly affected get back in their homes as soon as possible.
"For competitive home insurance deals to continue, it is imperative that there are no further Government increases to Insurance Premium Tax. As well as a roof over their heads, for most people their home is their biggest asset, so any moves that would further increase the cost of home insurance must be avoided."