In Q1 2022, the average price paid for buildings insurance was £225, down 7% on the same period last year. The average price of contents insurance was £114, a drop of 11% on last year. Both buildings and contents cover are at the lowest level they have been since the Association of British Insurers launched its Household Insurance Premium Tracker in 2012.

The tracker found the average premium for combined buildings and contents insurance was £307, down 2% on the last year, to its lowest level in four years.

Laura Hughes, manager, general insurance at the ABI, said: “Many households struggling to cope with the cost-of-living crisis, will be reassured that the cost of protecting their home and their possessions has remained competitive, despite the increasing costs of construction materials and labour.”

She added: “It is too early to assess the impact of the Financial Conduct Authority’s changes to the rules on pricing of home and motor insurance introduced on 1 January 2022. While, as the regulator has said, this could lead to some consumers paying higher prices if they used to benefit from significant new business discounts, for some it could still pay to shop around for the policy that best meets their needs.”

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