The latest Household Insurance Premium Tracker of the Association of British Insurers (ABI) shows that the average premiums for buildings insurance and contents insurance alike are now at their lowest level in the UK since the ABI began collecting data a decade ago.
In the first quarter of the year, the average price for buildings insurance fell 7% from the corresponding amount in the same three-month span in 2021. For contents insurance, there was an 11% decline. Both average premiums – £225 for buildings and £114 for contents – represent record lows.
The average price, meanwhile, for combined buildings and contents cover went down 2% to £307 – the lowest in four years, according to the trade body.
“Many households struggling to cope with the cost-of-living crisis will be reassured that the cost of protecting their home and their possessions has remained competitive, despite the increasing costs of construction materials and labour,” stated ABI general insurance manager Laura Hughes.
“The recent storms in February, which it is estimated will lead to insurers paying out £500 million to affected customers, is a dramatic reminder of the vital financial protection home insurance provides against unexpected and costly events.”
Hughes went on to say that it is too early to assess the impact of the Financial Conduct Authority’s changes to the rules on home and motor insurance pricing.
She added: “While, as the regulator has said, this could lead to some consumers paying higher prices if they used to benefit from significant new business discounts, for some it could still pay to shop around for the policy that best meets their needs.”
The ABI’s tracker is the only survey that looks at the price paid instead of the quoted premium.