As the cost-of-living increases, the cost of home insurance has decreased, reveals new data from the Association of British Insurers (ABI).
The research conducted by ABI shows that there has been a 7% decrease over the last 12 months. The average cost of home insurance is now around £225 a year. Showing even greater decreases, contents insurance dropped by around 11% to £114 a year. ABI began tracking the premiums of these policies in 2012 and they are currently at their lowest rate since tracking began.
The 54% increase in fuel prices has put more pressure on the current crisis where the cost of living has been described as the worst in a generation. With inflation still on the rise, the effect on the British public has seen increases in food prices, supermarket shopping and rent as well as fuel. This brings many even closer to the poverty line, with many households struggling to pay household bills, even though the Government has offered limited support.
ABI’s Manager, Laura Hughes stated “Many households struggling to cope with the cost-of-living crisis, will be reassured that the cost of protecting their home and their possessions has remained competitive, despite the increasing costs of construction materials and labour.
“The recent storms in February, which it is estimated will lead to insurers paying out £500 million to affected customers, is a dramatic reminder of the vital financial protection home insurance provides against unexpected and costly events.”
Now is a buyers’ market for home insurance with premiums at their lowest in years, so it’s a great time to consider switching insurers if your premiums are considered high.