How the pandemic is cutting insurance premiums
Every cloud has a silver lining, and it’s good to find a plus point amidst the doom and gloom of the last few months. So we’re pleased to report that one of the unexpected results of this year’s lockdown restrictions is that home insurance premiums are on a downward trend. With more people working from home, break-ins, house fires and leaks have all reduced. Ditto claims. In fact the most recent Office for National Statistics figures show that domestic burglaries fell by 72% in the first national lockdown. And the really good news is that this is now being reflected in reduced premiums for home owners.
According to Consumer Intelligence, home premiums have dipped 0.9% since April, with a typical building and contents policy now costing £150. As ever, Londoners are hardest hit paying an average £198 for their policies – 30% more than an average UK policy. The South East at £161 is the only other region to fork out more than £150 for an annual policy, which is the UK-wide average.
The cheapest area for home insurance remains the South West at £133, although homeowners in the North East and East Midlands also benefit from cheap policies.
Older Victorian properties witnessed the biggest increases to their home insurance premiums over the last 12 months. Properties built between 1850 and 1895 saw prices jump 3.4%. These homes are also the most expensive to insure averaging at £192 for an annual policy.
At the opposite end of the scale, properties built since 2000 continue to attract the cheapest annual policies at £139, despite a slight rise to their premiums of 0.8% over the last 12 months.
Overall, premiums have increased just 1.4% since Consumer Intelligence first started collecting data in February 2014.
Premiums reached their peak in June 2020 but have come off the boil slightly since. Nevertheless, prices continue to remain broadly stable. For instance, premiums have ticked upwards just 0.5% in the last 12-month period.
Consumer Intelligence arrived at these figures by comparing the prices offered by all the major price comparison websites and leading direct insurers. The top five prices for each person were then compared to the previous month’s top five and the variations averaged to produce an index.
If you need help or advice about block or contents insurance, we are here to help, so contact us via the website or give us a call today.
Author : Maryanne Bowring
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