The cost of home insurance has fallen compared to a year ago, with an average combined building and contents policy costing £290 or 79 pence a day, according to Association of British Insurers (ABI) figures.
The cost of buildings only, and contents only policies have fallen by 7% over the past year to £226, and £121 respectively.
Figures from the ABI’s latest Quarterly Average Household Premium Tracker show the average annual premium paid for a combined buildings and contents policy was £290, or £5.58 a week. This is up 0.7% since the previous quarter (£288) but down 1.8% compared with the same quarter last year £296. Combined policies account for nearly three quarters of premiums for household buildings and contents.
The average annual premium paid for a buildings only policy was £226 or £4.35 a week. This is a 5.2% decrease compared with the second quarter of 2015, and down 7.0% from the same quarter a year ago.
In addition, for contents only insurance, the average annual premium paid was £121, or £2.33 a week. This is down 3.1% on the second quarter of this year and down 6.8% compared to a year ago.
Mark Shepherd, the ABI’s general insurance manager, said: “Home insurance can provide a lifeline to families during floods or fires which can destroy personal possessions within minutes or force them out of their homes. This essential protection helps millions of people every year cope with these traumatic events and makes sure they have somewhere safe to stay.
“Home insurance can provide vital peace of mind for people, and the stable cost means people can insure their homes and belongings on average for less than the price of their daily takeaway coffee.
“UK consumers benefit from a very competitive home insurance market which helps to ensure affordability, but the imminent increase in Insurance Premium Tax from November is set to push up premiums for customers buying home insurance.”