Good news for those looking to save money, the cost of your home insurance just got cheaper.
After a decade in which the average UK wage stagnated in real terms, and has only just started to rise again, it’s a welcome boost for households throughout the country.
Average policy cost falls to £287 a year
Continuing the trend seen in the last year or so, figures from the Association of British Insurers’ (ABI) latest Quarterly Average Household Premium Tracker survey show that the cost of taking out a standard policy has now fallen to an average of £287 a year.
That’s a drop of 2% on the year, and the price falls appear to be speeding up; half of the 2% came in the first three months of this year.
Cover for 79p per day…
It means that the cost of insuring the average home now stands at just 79 pence a day, or £5.52 a week. As the ABI points out, that’s much less than many people spend on a morning coffee bought on the way to work.
Cover bought separately
Not everyone buys their buildings and contents cover in one home insurance policy package; you might be a tenant, for example, and so not have any interest in insuring the building itself (which is the landlord’s responsibility).
The good news is that the cost of buying both buildings insurance and contents insurance as stand-alone policies has also fallen.
Buildings cover falls 3%
Buildings cover has dropped a rather tasty 3% in the year to the end of March, and the average policy now costs £4.33 a week.
Contents cover drops the most at 8%
The cost of a contents policy has also dropped, and by even more. A whopping 8% has been lopped off the average price of contents cover over the last 12 months and now stands at £118 per annum, or £2.27 a week.
Again, the price falls seem to be accelerating, with 5% of the 8% coming in the first 3 months of this year.
Fierce competition between insurers and lower levels of home burglary and general theft appear to be the main reason.
Peace of mind for less than a cup of coffee
When the price of making sure you could afford to rebuild your home and replace the contents costs less than buying a cup of coffee each day, you’d be mad not to have cover.
As the ABI’s general insurance manager, Mark Shepherd, points out “The cost of this vital protection has continued to fall, meaning people can on average insure their homes and belongings – and give themselves peace of mind – for less than the cost of a cup of coffee a day.”
Typical claims run into thousands
Again, for the price of a coffee a day, you’re potentially saving yourself tens of thousands of pounds. The ABI points out that in the very wet winter of 2013/2014 the average pay out per claim for flood damage was almost £30,000. Could you afford that without home insurance? Probably not.
There were 18,700 claims for flooding and 450,000 claims for storm damage during that winter, showing how relatively common it is to be affected by such disasters.
Compare, or pay more
When you take out cover, always compare quotes from a number of insurers, don’t just accept the first quote you get, or simply renew with your existing provider if you already have cover in place.
You can do so easily by going online and using price comparison sites, but for an often more accurate and tailored level of cover use an insurance broker. Brokers often have access to exclusive that you won’t find by using a comparison site or going direct.
As an online insurance broker, Policy Expert help our customers to compare insurance products and find a policy that’s right for them. Customer care is at the heart of everything we do and we have a dedicated customer service team on hand by phone, email, twitter and instant chat. For more information, speak to one of our experts on 0330 0600 600 or email firstname.lastname@example.org