House insurance premiums fall by 8.2% – mortgage introduction
Home insurance premiums are down 8.2% in the past 12 months, which brought the average home and contents insurance down to £ 138, according to Consumer Intelligence.
Overall, the premiums have decreased by 6.9% since Consumer Intelligence started collecting data for the first time in February 2014.
Homeowners under 50 have absorbed most of that savings, with their premiums falling 8.9% while those over 50 saw a 4.5% decrease.
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London is still the most expensive place to get home insurance at £ 139.
It found that Londoners pay, on average, a third more than homeowners in the neighboring South East (£ 145), the next most expensive area for household items.
The North East (£ 123) remained the UK's cheapest region, followed by the East Midlands (£ 128) and the North West (£ 128).
Double-digit annual price falls were recorded in Yorkshire and Humber (10.9%) and the South East (10.2%), while Wales (3.9%) saw the smallest falls in the last 12 months.
Over a shorter period of three months, home insurance premiums continued to decline across the UK. The largest decreases were recorded in Yorkshire and the Humber (4.1%), the South East (3.9%) and Scotland (3.9%).
Harriet Devonald, pricing expert at Consumer Intelligence, said, “More and more people are staying at home for extended periods of time – burglars are deterred from breaking into homes and water damage claims are reduced by allowing people to react quickly to leaks.
“What we are also seeing on the PCW home market is a kind of price war, triggered by some providers – with PCW-led sales strategies – who have really tried to enlarge their home books.
“And this has sparked reactions from some of the bigger players trying to keep up and protect their soil.
“We expect new business premiums to rise when the market balances out new business and renewal prices – but we have yet to see by how much.
“These new rules are likely to have a much harsher impact on home insurance than it is on auto insurance as home insurers have a lot of old and large arrears. And some insurers will be more affected than others. "