Home contents insurance costs have fallen to a record low – but one in four UK households do not have cover for their possessions – according to the Association of British Insurers (ABI).
The average cost of home contents insurance now stands at a record annual low of £127 a year – or £2.40 a week – according the ABI’s home insurance premium tracker.
The figure stands at its lowest since the ABI started collecting the data in 2012 and equates to around half the average £5.10 that households spend per week on takeaway meals.
Yet despite this, one in four UK households – some six million – have no insurance to cover their possessions, the ABI said.
The ABI’s home insurance premium tracker measures what consumers pay for their home insurance, rather than prices they are quoted.
Its analysis, which used Office for National Statistics (ONS) data, found that households in Northern Ireland are the best protected, with 82% insured, while those in London are the least protected with only 55% having contents cover.
Laura Hughes, the ABI’s senior policy adviser, general insurance, said: “While the average cost of home contents insurance is at an all-time low, too many households are still playing Russian roulette with their possessions.
“For some people on lower incomes and renters, especially in cities, insuring your possessions may be seen as unaffordable or unnecessary.
“But spend a few minutes totting up the value of all your possessions and you’ll realise they can add up to a significant sum if they all need to be replaced at once.
“In a highly competitive market, there are a range of specialist policies available to give you the cover you need at an affordable price.
“Some housing associations and local authorities may offer cheaper home contents insurance, tailored to your needs and your budget.”
The ABI also said the average price paid for buildings insurance, at £258, was at its lowest level since 2015.
The average price paid for combined buildings and contents insurance, was £307.
Here are the percentages of households across the UK without home contents cover, according to the ABI:
– Northern Ireland, 18%
– South East, 19%
– East Midlands, 21%
– Yorkshire and Humberside, 22%
– East Anglia, 22%
– South West, 22%
– Wales, 22%
– North West, 24%
– Scotland, 26%
– West Midlands, 28%
– North East, 32%
– London, 45%