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What is the average cost of home insurance?

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Despite the cost of living steadily increasing year on year, it’s a relief to learn that not all areas of our more personal economies are putting an added burden on our purse strings and requiring them to stretch that little bit further.

Take the home insurance market as a point in question. According to the results of a recent tracker survey carried out by the Association of British Insurers, which has closely monitored home insurance costs over the last 12 months – there are some encouraging signs, backed by a wealth of facts and figures.

And that good news transpires that the average cost of home insurance has stayed on an even keel for the past year for the most part, based on data received from ABI members collated over the final quarter of 2014, and which effectively accounts for some 90% of the home insurance market.

The tracker has for the first time determined what customers are actually stumping up for, with regard to their household buildings, contents and combined insurance policies; and fascinatingly, just how it changes each quarter.

Marginally, as the percentages attest to as you read on. Conversely, while the home insurance price (combined buildings and contents) has remained stable (3% lower than the average premium paid during the same fourth quarter from 12 months previously, and indicative of a 1% saving over third quarter stats) over the same passage of time the average claim costs from households has risen by some 12%.


Home insurance costs less now than it did 12 months ago according to latest industry stats

But not to take the shine off the more impressive figures, elsewhere the average buildings insurance premium paid was £230 per annum, which equates to £4.43 per week – which represented a 4% downshift on the previous quarter and 6% shrinkage from the exact same time last year; although subsidence claims witnessed a 12% rise during the same period, with the average claim being in the region of £5,400.

In terms of contents insurance alone, the ABI tracker cites that the average annual premium paid was £124pa, or £2.38 per week.

This promotes a 5% saving over average costs recorded in 2014, and 4% less than comparative third quarter figures, with the average fire claim standing at £11,000 and theft at £1,700.

However the average accidental damage claim was up nearly a quarter in a 12 month period, with £550 being representative of this.

In general though the bigger picture is a rosier one, and one which provides optimism for those of you looking to arrange home and contents and/or buildings insurance or perhaps renew an existing policy in the not too distant future.

Naturally, if you are in the market for ANY type of new or revised insurance policies – as currently fronted by some of the market leaders – then you’ve come to the right place to discover the best deals, as here at Bobatoo it’s our business to help you mind your own insurance business as successfully as it can be.