Figures from the Association of British Insurers (ABI) said in the first three months of 2015 the annual policy cost £287. This is equivalent to £5.52 a week.

These prices were down 1% on the last three months of 2014 and 2% lower than a year ago.

The average annual premium for buildings insurance was found to be £225, or £4.33 a week, in the first quarter. This figure is down 3% on both the previous quarter and start of last year.

For contents only insurance, the average annual premium paid was £118, or £2.27 a week. This is down 5% on the final quarter of 2014 and is 8% down on the first quarter of last year.

Mark Shepherd, the ABI’s general insurance manager, said that insurance policies had proved to be life savers in many circumstances.

“The scale of loss people suffer if their home is flooded or catches fire can be almost unimaginable,” he said

“Some families lose not only the roof over their heads but also most of their personal possessions in a matter of minutes. When the worst happens, home insurance is a life-line.

“The cost of this vital protection has continued to fall, meaning people can on average insure their homes and belongings –  and give themselves peace of mind – for less than the cost of a cup of coffee a day.”