The average UK home holds £35,000 worth of contents and yet 28% of those do not have home insurance.
According to figures released by the Association of British Insurers the average cost of home contents insurance is just £141 a year, working out at less than £3 a week. The overall cost is actually falling so combined home and contents insurance may be cheaper than in previous years.
Competitive Insurance Prices Drive Down Cost
‘Average premiums for combined buildings and contents insurance fell through 2016, and reached a record low at the beginning of 2017 at just £297, with benign weather, cheap reinsurance, and high competition keeping premiums low,’ said the ABI in its 2018 State of the Market report. ‘The continuing penetration of [home insurance comparison sites] will also be contributing to the overall fall in prices, with 20% of Gross Written Premiums now written through price comparison sites.’
Flood Insurance And Home Emergency Cover
Other industry changes to provide better value insurance for consumers includes the launch of Flood Re in April 2016 that has helped to keep home insurance accessible and affordable for those living in high flood risk areas.
However, there have been other shifts in the market to increase pressure on home insurance companies to provide the best cover. The ABI reported an increase in both the volume and cost of Escape of Water claims, with claims costs increasing 50% in the last three years.This has been blamed on the use of modern plastic pipes rather than copper that are often hidden away until a DIY disaster. Not only are there more claims but repair costs have increased based on the strength of the pound. Insurance firms are looking for ways to help with this new trend.
Make Sure You’re Covered
“The value of possessions owned by the average household will come as a shock to many,’ said Mark Shepherd, Head of Property at the ABI. But with the list of ‘must haves’, such as electrical gadgets, ever expanding it can be easy to under-estimate the worth of your contents. These figures further highlight what can be at stake for many who have no contents insurance.
“The value of possessions owned by the average household will come as a shock to many,’ said Mark Shepherd, Head of Property at the ABI. But with the list of ‘must haves’, such as electrical gadgets, ever expanding it can be easy to under-estimate the worth of your contents. These figures further highlight what can be at stake for many who have no contents insurance. With a wide variety of policies available, including no-frills policies tailored to people on limited budgets, insuring your possessions can mean that if the worst happens you are not left counting the cost for years to come.”
“And make sure that when your policy is due for renewal that you review the value of your possessions to ensure that you are adequately covered.”