While insurers had to absorb big pay outs due to the storm damage and flooding seen this winter, premiums have in fact continued to fall – that’s according to the AA British Insurance Premium Index.
It cost £122.06 for a Shoparound buildings insurance premium at the end of March this year, a month-on-month fall of 0.7 per cent and a year-on-year drop of 6.5 per cent.
For buildings and contents combined, this figure was £170.59, representing a 2.2 per cent monthly fall and an 8.4 per cent decrease over the 12 months.
The Shoparound figures are drawn as direct purchase prices from insurers, as well as price comparison sites.
The average contents insurance quote stood at £102.78 at the end of March, just four pence more than the index’s figure in 1994.
Over the past two years premiums have been on a downward trend, despite, as analysts point out, the damage caused by bad winter weather.
However, such costs are significantly below those suffered by insurers during the storms of 2007, which cost the sector an estimated £3.3bn, and contributed to premium increases in high risk areas.
Experts say that proposed ‘Flood Re’ legislation – making home insurance affordable to those in flood-prone areas – should become law as soon as possible.
The report also drew calls for continued flood defence investment, as the UK sees increasingly extreme weather conditions.