Average premiums for home insurance drop to lowest level in four years

The Association of British Insurers said some average premiums have fallen to their lowest levels for a decade.

The February storms will lead to insurers paying out about £500 million to customers (Danny Lawson/PA) (PA Wire)

Average home insurance costs have dropped over the past year, according to the Association of British Insurers (ABI).

The price fall may give a bit of relief to households who are grappling with the soaring costs of many other bills.

In the first quarter of 2022, the average price paid for buildings insurance was £225, according to the ABI. This was a 7% annual fall and the lowest average price since the ABI started collecting this data back in 2012.

The average price paid for contents insurance, at £114, fell by 11% annually. Like buildings cover, this stands at its lowest since ABI started collecting the data.

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

Laura Hughes, ABI

For combined buildings and content insurance, the average premium was £307, down 2% over the past year and the lowest level in four years.

Laura Hughes, the ABI’s manager, general insurance, said: “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.

“The recent storms in February, which it is estimated will lead to insurers paying out £500 million to affected customers, are a dramatic reminder of the vital financial protection home insurance provides against unexpected and costly events.”