General Insurance Article - Home insurance premiums remain stable despite winter floods


The cost of the average combined buildings and contents insurance policy is at its lowest level in four years, according to the ABI’s latest Home Insurance Premium tracker published today.

 An average combined home insurance policy costs £309, data from the second quarter of this year shows. Despite the severe winter floods, which are expected to cost £1.3bn, insurers have kept home insurance premiums at competitive levels.
  
 The figures for Q2 2016 show that:
     
  1.   The average premium for combined buildings and contents policies has fallen to £309. This is a £1 decrease since the previous quarter (£310) and a decrease of £2 on the same quarter last year. In fact, the combined average premium is at its lowest point since the ABI began collecting this data in Q4 2012.
  2.  
  3.   Buildings only policies cost an average of £265, an increase of £11, or 4%, compared to the previous quarter, when it was£254. This is in line with similar increases between Q1 and Q2 in previous years.
  4.  
  5.   Contents only policies cost an average of £138, a slight increase of £1 since Q1 2016.
 Mark Shepherd, ABI General Insurance Manager said: “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. 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. Our recent guide on ‘Home Insurance’ can help customers understand the different policies available to get the right level of cover, which may not be the cheapest.
  
 “Home insurers have also continued to offer competitive deals despite the recent increases in Insurance Premium Tax for customers. Home insurance is essential to protect people’s homes and possessions, so in order for competitive prices to continue, it is imperative that any further moves that could increase the cost are avoided.”  

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