Cost of home insurance falls as result of lockdown
There’s been a welcome 1.2% fall in average home insurance premiums, according to Consumer Intelligence.
The market research and insight business said the fall in premiums is due to a reduction in break-ins, as a result of the Government’s stay-at-home directive.
The average buildings and contents policy now stands at £145 across the UK.
John Blevins, head of product at Consumer Intelligence said: “No doubt, the current pandemic and resulting lockdown is responsible for these shifts given there is a reduction in overall claims being made.
“With any insurance, claims frequency and severity will dictate pricing movements and as
the world shifts to slowly reducing Covid-19 restrictions we will expect to see small shifts in
pricing as a result.”
Across the market, average overall premiums sit at £145, however younger homeowners pay slightly more for their home insurance. The under-50s pay on average, £153 for an annual buildings and contents policy compared to just £132 for the over-50s.
Where you live makes an even bigger difference to the cost of your home cover.
Londoners (£215) are now paying almost 50% more for their home insurance when compared against the UK average (£145).
Homeowners in the North East fork out just £129 for an annual policy, with the South West (£130) and West Midlands (£132) also benefiting from cheaper premiums.
London – £215
West Midlands – £132
Scotland – £142
East Midlands – £135
Wales – £141
South East – £147
Yorkshire and The Humber – £135
North West – £142
South West – £130
North East – £129
Eastern – £140
Hike in accidental damage premiums
Despite the fall in overall home cover costs, it’s not all good news.
The fact that we are spending more time at home means there’s been a rise in claims for accidental damage, leading to an increase in premiums.