Despite a series of flash floods and disaster events forcing insurer’s costs up worldwide (as reported here
), the average home insurance premium in the UK has actually fallen to its lowest level in four years.
According to official figures from the Association of British Insurers, the average combined home insurance policy now costs £309 based on data from the second quarter of the year.
Figures show that there has been a £1 decrease compared to the previous quarter and a £2 decrease compared to the same quarter last year. In fact, the combined average premium is at its lowest level since the ABI’s records began back in quarter four 2012.
Despite this, however, buildings insurance policies cost an average of £265 – representing an increase of £11, or approximately 4%, compared to the previous quarter’s level of £254. Contents only policies meanwhile, stood at an average of £138 – that’s a slight jump of £1 since the first quarter of 2016.
Mike Shephard, general insurance manager for the ABI, believes that this is overall good news for customers especially given the fact that insurers are expected to pay around £1.3 billion for severe winter floods.
“As seen during the severe winter floods, home insurance provides valuable protection from events that can force people out of their homes and destroy their belongings,” he said. “So it’s good news that homeowners are making most of a very competitive home insurance market by shopping around to get the best deal that meets their needs.
“Home insurers have also continued to offer competitive deals despite the recent increases in Insurance Premium Tax for customers.”
Want to save your customers money? How about £5.6 billion…
Brokers and insurers to suffer as Brits cut back?