Home insurance prices fall
29/01/2015
Buildings and contents insurance prices have fallen over the last year, according to the Association of British Insurers (ABI).
The ABI tracked the price paid for household buildings, contents and combined insurance, and found that insurance premiums have been driven down by competition over the last year, despite heavy flooding through much of the UK.
For buildings insurance, premiums paid fell by 6% to an average of £230 last year, and contents insurance fell by 5% to £124. The average annual premium paid for a combined buildings and contents policy was £291, which is a 3% fall on last year.
Mark Shepherd, the ABI’s Manager, General Insurance, said:
“There is no substitute for home insurance. Last winter’s floods dramatically highlighted the value of insurance, with insurers dealing with over 13,000 claims from flooded property owners. With the average domestic theft claim of £1,600, and average cost of dealing with subsidence running at £6,900 home insurance is outstanding value for money.
“The expertise of insurers in assessing, planning and pricing for unwelcome events, such as bad weather, ensures that millions of families are benefitting from very competitively-priced home insurance that is protecting them from many of life’s unexpected and unwelcome events.”
In 2014, severe flooding in parts of the UK such as Somerset meant that insurers had to pay out an estimated £451m in flood-related claims on its policies.
Need financial advice?
If you have any personal finance questions related to this news article, then please contact our financial advisers. You can get in touch by asking a question online, calling us on 0800 092 1245, or by arranging a visit.
Share this..
Related stories
Have you considered a pay-as-you-go mobile?
While mobile phones have become more of a necessity than a luxury for many people in the UK, do you know how much you spend on your contract at the moment?
The vast majority of the UK public have moved or are considering moving to contract phones which often offer attractive deals but lock you in for varying amounts of time. It is very easy to use your contract mobile phone when per...
UK power companies under pressure over increased direct debits
It has been revealed that a number of UK power companies are placing substantial pressure on their customers to increase direct debit monthly payments. While the energy companies argue that overpayments in the summertime will make up for underpayments in the wintertime there are concerns that the industry is using as a way to increase short-term cash flow.
Many consumers are reporti...
Broadband Is Still A Growing Market
Figures released today by the Office for National Statistics (ONS) show that broadband use in the UK is hitting record levels with 56% of households using broadband against 51% last year. It seems that the sector is still very much in demand even though the financial climate in the UK has taken a turn for the worst.
While the increase could be claimed to be a little misleading be...
Carphone Warehouse set to capture Tiscali UK
One of the longest-running disposal programs could soon come to an end with rumours in the market that Carphone Warehouse, the owner of the AOL broadband business, is set to acquire Tiscali's UK broadband operation for a mere £200 million. This is less than half of the price which Carphone Warehouse offered only last year when a £550 million deal was under discussion, before the company walked a...
Read MoreCould Scottish and Southern be taken over by Sweden's Vattenfall
It has been revealed this weekend that UK energy company Scottish and Southern energy is in talks with Swedish counterpart Vattenfall. The financial press are suggesting an £11 billion takeover could be in the offing with talks said to be at an advanced stage. The move will see yet another of the U.K.'s leading energy companies taken over by a foreign parent amid concerns that the UK government i...
Read More