Latest Insurance Posts

Featured Posts

Filter By Categories
Catherine Carey
By
September 03, 2020

Fewer Claims Result In Lower Insurance Premiums For UK Home Owners

home index feb 19

  • The average home insurance policy has fallen 0.3% in the last three months – resulting from fewer claims due to people staying at home more during the coronavirus crisis
  • Nevertheless, overall premiums are up 3% when taken over a 12-month period

 

A steep drop in recorded crime since the start of the coronavirus lockdown has contributed to a downward shift in home insurance premiums. In the last three months, the average buildings and contents policy has fallen 0.3%.


“It’s perhaps no coincidence that this period takes us through the recent lockdown where the vast majority of people were spending much more time at home,” says John Blevins, product manager at Consumer Intelligence, the insurance research experts. “Crime rates and home claims have both declined in recent months, which is the most likely reason for this small deflation in premiums.”


However, average premiums are up 3% when looked at over a 12-month period. A typical buildings and contents policy now stands at £150. Overall, premiums have increased just 1.9% in the six-and-a-half years since Consumer Intelligence first started collecting data in February 2014. Despite premiums edging up to their highest recorded point in June – before falling back again in July – prices have remained broadly stable for the last three years.


Homeowners in London (£195) and the South East (£160) continue to pay the most for their insurance policies. They are the only two regions across the UK to attract premiums that are higher than the national average (£150). The East Midlands (£136) and the South West (£136) are now the cheapest areas for home insurance.


This recent reduction to home insurance premiums has not been felt by both our age groups. Premiums for the under-50s have remained flat in the last three months. It’s only the over-50s who have benefited, with their annual policies now 0.9% cheaper than three months ago.


Interwar properties, those built between 1925-1940, saw premiums rise 4.4% in the last 12 months, the most of any segment. This was closely followed by houses erected this millennium (4%).

 

Average premiums and price rises around Great Britain

 REGION

CHANGE IN YEAR TO JANUARY

AVERAGE PREMIUM (FIVE CHEAPEST)

London

6.8%

£205

South East

6.1%

£157

Eastern

5.5%

£149

Scotland

5.0%

£143

South West

4.9%

£137

West Midlands

3.3%

£141

East Midlands

2.9%

£140

North West

2.8%

£152

Yorkshire and The Humber

2.0%

£144

North East

1.6%

£133

Wales

1.3%

£140

GREAT BRITAIN 

2.9%

£151

 

 REGION

CHANGE IN YEAR TO JANUARY

AVERAGE PREMIUM (FIVE CHEAPEST)

London

7.4%

£195

South East

3.8%

£147

Eastern

3.7%

£160

Scotland

3.1%

£136

South West

3.0%

£143

West Midlands

2.4%

£143

East Midlands

2.2%

£136

North West

1.6%

£148

Yorkshire and The Humber

1.6%

£147

North East

1.0%

£141

Wales

0.6%

£145

GREAT BRITAIN 

3.0%

£150

 

 


Insight that will enable you to optimise your pricing strategy 

Download our Home Insurance Price Index to gain insight into market movements, benchmark the major van insurance brands and help you understand the data behind the results.

 

Home Insurance Price Index


 

 

Comment on blog post . . . 

 


Subscribe to newsletter

Subscribe