Home insurance is cheaper than a cappuccino, with the average cost of a combined building and contents policy having fallen to £290 a year or 79 pence a day, according to the Association of British Insurers (ABI). It pointed out that this is less than a takeaway cup of coffee.

Combined policies account for nearly three quarters of premiums for household buildings and contents, but the data shows that all types of home insurance cover costs less now than in 2014.

The average annual premium paid for a buildings-only policy was £226 or £4.35 a week. This is down 7% from the same quarter a year ago.

For contents-only insurance, the average annual premium paid was £121, or £2.33 a week, down 6.8% over the last 12 months.

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.”