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Home insurance cheaper than a litre of milk

Adam Williams
Written By:
Adam Williams
Posted:
Updated:
29/07/2015

Building and contents insurance costs less than a litre of milk per day, the Association of British Insurers (ABI) has said.

The cost of home insurance policies has fallen over the past year, with the typical building and contents policy now costing 79p a day.

The trade body’s quarterly tracker said the average policy was 2% cheaper than a year ago, costing £288 per year.

Combined policies account for nearly three quarters of household premiums, it said.

The average premium paid for a buildings only policy was £238 a year, equivalent to £4.58 a week. This is 5.3% higher than the first three months of the year but 1.2% lower  than last year.

For contents only insurance, the average annual premium paid was £125, or £2.40 a week.

Mark Shepherd, the ABI’s general insurance manager, said it was vital that homeowners were protected.

“When the worst happens, home insurance is a life-line,” he said.

“If a home is flooded or catches fire, families can lose personal possessions within minutes or sometimes be left without a roof over their head. Home insurance helps millions of people every year cope with what can be a very traumatic event and makes sure they have somewhere safe to stay.

“The cost of this essential protection for homes and belongings remains stable, meaning people can on average insure their homes and belongings for less than the daily cost of a litre of milk, giving them vital peace of mind.”


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