Home insurance rates ‘down 6% on last year’

The average annual home insurance premiums for new customers have fallen by 6% over the past year to £137, according to MoneySuperMarket.

In an analysis of 3.2 million home insurance quotes between 1 June 2012 and 31 August 2013 the price comparison firm also found that the cost of combined buildings and contents cover fell by £11 or 7%, while premiums for buildings alone fell by £12 or 11%.

However, the cost of standalone contents insurance bucked the trend, increasing by £3 or 4%. In the past three months the rate increase for this coverage was even more pronounced at 10%.

Regional variations

The study also looked at how home insurance crates varied by region. It found that Norwich was the cheapest postal area for home insurance, with annual premiums available for £115 in summer 2013.

At the other end of the scale, the Harrow postal code in London had the most expensive average quote at £200 – although this was £25 lower than Harrow residents were paying on average last year.

MoneySuperMarket home insurance expert Kevin Pratt said: “The data does show that during the summer quarter there was a slight increase in insurance prices in June, but this has started to decline again through July and August.

“Falling premium prices for new customers just shows the value of shopping around and not accepting the renewal quote, even if it’s less than last year, the price could be even lower with a different insurer so comparing the quotes on offer could save you even more money.

“With contents insurance bucking the trend it is crucial consumers tackle this head on and seek out the best value cover.”

He added: “Across the UK home insurance premiums are decreasing in price. The area you live in impacts the price you pay for insurance, and certain areas cost substantially more than others, but there are steps that everyone can take to keep the cost at a minimum.”