Home insurance is getting increasingly cheaper and the cost for a combined building and contents policy has dropped to 79 pence per day, less than the price of a litre of milk, the Association of British Insurers (ABI) says.
The average annual premium paid for a combined policy was £288, or £5.54 a week, during the last quarter, according to the latest ABI home premium tracker. Compared to the same period a year ago, this is a decrease of 2 per cent. Combined policies account for nearly three quarters of household premiums.
Mark Shepherd, general insurance manager of the ABI, said:
“When the worst happens, home insurance is a life-line. If a home is flooded or catches fire, families can lose personal possessions within minutes or sometimes be left without a roof over their head. Home insurance helps millions of people every year cope with what can be a very traumatic event and makes sure they have somewhere safe to stay.
“The cost of this essential protection for homes and belongings remains stable, meaning people can on average insure their homes and belongings for less than the daily cost of a litre of milk, giving them vital peace of mind.
“UK consumers benefit from a competitive home insurance market to ensure affordable priced protection for their homes, but with an increase in insurance premium tax adding £9.48 to the average premium from November, this will mean a further increase in costs for customers.”
