Home insurance cost at three-year low

28 May 2013

The cost of home insurance has fallen by 13% in the last three years, with premiums at their lowest level since spring 2010, according a comparison site.

The average annual premium for home insurance is now £136, with the average cost falling by 11% year-on-year, research by Moneysupermarket found.

Hannah Jones, home insurance expert at Moneysupermarket, said: "This will come as welcome relief to many consumers who are struggling with the high cost of living and will not necessarily buy home insurance as a result of the pressures on their wallet."

Competition among providers is the reason for falling premiums, according to the report, with consumers switching their policies in search for a better deal also contributing to the fall.

Jones added: "Those who become complacent by sticking with existing policies will miss out if they don't take advantage of shopping around."

All regions see falls

All UK regions experienced a fall in home insurance premiums between 2011 and 2012, with Kingston upon Thames seeing the biggest decrease.

It saw premiums fall by 13.8% between 2011 and 2012, with Harrogate and Halifax also seeing big reductions, with average premiums falling by 12.9%.

The cheapest area for home insurance, according to Moneysupermarket, is Norwich, where the average premium was £113.22, closely followed by Hereford with an average premium of £114.48.

Harrow was the most expensive region for home insurance, despite premiums falling by 10.6% between 2011 and 2012, with average premiums costing £211.91.


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