Silver lining to lockdown: Decrease in home insurance premiums

Home Insurance Premium Trends

Home insurance premiums have recently decreased by 0.9% since April due to the impact of the coronavirus pandemic. This trend is attributed to more people staying at home during national lockdowns, resulting in fewer claims being made.

Analysis by Consumer Intelligence

Consumer Intelligence, a data insight expert, has reported that home insurance premiums are continuing to decline as a result of the ongoing pandemic. Since April, premiums have dropped by 0.9%, with the average building and contents policy now costing £150.

Impact of Lockdown on Claims

John Blevins, a pricing expert at Consumer Intelligence, explained that the decrease in break-ins is linked to people spending more time at home. Statistics from the Office for National Statistics show a 72% reduction in domestic burglaries during the first national lockdown.

Regional Disparities in Premiums

Londoners pay over 30% more for home insurance compared to the UK average, with an annual premium of £198. The South East follows closely behind with an average premium of £161. In contrast, the South West remains the cheapest region for home insurance at £133 annually.

Property Age and Premiums

Older Victorian properties have seen the largest increase in home insurance premiums over the past year, with prices rising by 3.4%. On the other hand, properties built in the current millennium continue to have the lowest annual premiums at £139.

Average Premiums and Changes by Region

• London: 4.6% increase, £198 average premium
• Scotland: 1.8% increase, £142 average premium
• South East: 1.6% increase, £161 average premium
• West Midlands: 1.6% increase, £142 average premium
• South West: 0.5% increase, £133 average premium
• East Midlands: 0.4% decrease, £138 average premium
• Eastern: 0.6% decrease, £150 average premium
• Wales: 0.8% decrease, £144 average premium
• Yorkshire and The Humber: 0.8% decrease, £144 average premium
• North West: 1.7% decrease, £150 average premium
• North East: 2.6% decrease, £136 average premium
• Great Britain: 0.5% increase, £150 average premium

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