Home insurance premiums fall by 22%

House in ring

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%.

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Intense competition

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."

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