Home insurance premiums fall by 22%
Homeowners are getting the best deal on their home insurance in more than four years after research revealed that premiums have dropped by nearly a quarter.
Number-crunching from price comparison website Moneysupermarket.com found that the average premium currently stands at £124 - the lowest figure since spring 2010 when the data was first collected and a 22% drop over the four-year period.
The data revealed home insurances costs have dropped in all of the UK's postal areas over the past four years, with those living in Bolton and Brighton benefitting the most.
Those living in the North-West town have seen a drop of 23.2% in their premium on the past four years - a saving of £33 - while those in Brighton are saving £18 a year after a reduction of 13.7%.
Insurers are also seeing a big increase in the number of homeowners adding high-value, single items to their policy such as jewellery or pieces of art. The value of single items Brits are insuring is at its highest point since March 2010 at £3,494, compared to £2,694 four years ago. That's an increase of 30%.
Insurance expert at Moneysupermarket.com, Kevin Pratt, said: "It's vital to declare higher value single items on your contents insurance policy to ensure you are adequately insured. Every insurer sets a ‘single item policy limit' - the maximum amount it will pay out on any single item unless you list it separately when you take out cover. This limit is usually in the region of £1,500, but it's best to check your documents to see what is specified."
He added: "The trend of home insurance deflation continues apace - welcome news all round to homeowners across the country. As well as intense competition among insurers prices are also falling to reflect a decline in the number of burglaries, which have been reducing in number since 2011."
This is the opposite of inflation and refers to a decrease in the price of goods, services and raw materials. Economically, deflation is bad news: the only major period of deflation happened in the 1920s and 1930s in the Great Depression. Not to be confused with disinflation, which is a slowing down in the rate of price increases. When governments raise interest rates to reduce inflation this is often (wrongly) described as deflationary but is really an attempt to introduce an element of disinflation.
Does exactly what it says on the tin: covers the contents of your home for theft and damage and also may insure certain possessions (jewellery, cycles) outside of the home. Things to watch for include the excess and also the maximum payout on individual items. Another grey area is kitchen fittings, as some contents policies say these are not contents but part of the fabric of the property and covered by buildings insurance and some buildings policies don’t cover them because they regard them as contents.