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Despite the impact of the severe floods this winter and the rise in Government’s Insurance Premium Tax, the price of the average combined buildings and contents insurance policy remains competitive.
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Average price of insuring a home and its contents is now less than £6 a week
Figures from the ABI’s latest quarterly average household premium tracker, the only market indicator of what homeowners actually pay for their home insurance, reveal that in the first quarter of the year:
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The price paid for the average combined buildings and contents policy, at £310, was down £4 on the previous quarter, and unchanged from the same quarter 2015. While traditionally home insurance premiums fall in the first quarter, this reduction comes despite the severe flooding last December and early this year that led to insurers dealing with nearly 10,000 claims from flooded homeowners, and the introduction, last November, of the increased rate of Insurance Premium Tax at 9.5%.
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The average buildings only policy cost £255, with the average contents policy costing £136. Both were virtually unchanged from the previous quarter.
James Dalton, the ABI’s Director of General Insurance Policy, said: "Homeowners are rightly making the most of a very competitive home insurance market by shopping around for the best deal.
"The severe flooding last winter highlighted why home insurance is so important, and the work continues to help those most badly affected get back in their homes as soon as possible.
"For competitive home insurance deals to continue, it is imperative that there are no further Government increases to Insurance Premium Tax. As well as a roof over their heads, for most people their home is their biggest asset, so any moves that would further increase the cost of home insurance must be avoided."
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