Home insurance premiums come tumbling down
The cost of home insurance has fallen by 5.4 per cent in the past year, with the average premium now standing at £146, according to analysis of over 3.3 million quotes by MoneySupermarket.
The sixth edition of the MoneySupermarket Monitor on home insurance, reveals over the 12 months to August 31, 2012; combined buildings and contents insurance saw an average fall of 8.4 per cent, stand-alone contents insurance premiums decreased by 14.8 per cent and stand-alone buildings cover by 2.6 per cent. The research also showed residents of the Scottish border town of Galashiels benefited the most from falls in home insurance prices, seeing a 11.5 per cent drop, closely followed by Sunderland, Kirkcaldy, Worcester and Blackpool - all with an 11 per cent reduction.
It was not good news for all home owners however, with the MoneySupermarket Monitor revealing ten UK postcodes registering an increase of up to ten per cent to the cost of home insurance. Unsurprisingly, nine of those were in Greater London. Northern Ireland was the only area outside of Greater London to see an increase to annual premiums.
Hannah Jones, home insurance expert at MoneySupermarket, said: "With energy bills on the rise and Christmas around the corner, insurance deflation in the home insurance markets will be welcome news to those with stretched budgets. Homeowners shouldn't get complacent however, and expect this trend to last.
Although the overall picture shows the cost of home insurance coming down, our research shows, Greater London has been hit hard, with households seeing quite substantial increases to the cost of home insurance. Many factors impact the cost of home insurance and living in a more affluent area can add to the cost of a premium, typically because the as the value of the property and the contents values will generally be higher. This may be the case in London, as property prices have also bucked the downward trend felt by other regions of the UK.
"The postcode you live in can dramatically affect how much you pay for your home insurance. If your property is classified as being in a ‘high-risk' area - whether it be for crime, flooding, expensive or even fraudulent claims - it will be reflected in the cost of your insurance. Unfortunately, there is very little you can do about where you live, except move house, but, there are steps everyone can take to reduce premiums such as, installing a home security system or even by joining your local neighbourhood watch.
"In order to capitalise on current low home insurance prices, it's crucial for people to shop around and ensure they get the best possible deal on cover. Finding the best deal on home insurance is quick and easy to do and the average annual saving made by those using MoneySupermarket is £126."