Insurance experts say that there has been a downward shift in home insurance
premiums due to a steep drop in reported crime since the start of the coronavirus lockdown.
In the last three months, the average buildings and contents policy has fallen by 0.3%.
However, average premiums are up 3% when looked at over a 12-month period. Overall, premiums have increased just 1.9% in the six-and-a-half years since Consumer Intelligence first started collecting data in February 2014. Despite premiums edging up to their highest recorded point in June – before falling back again in July – prices have remained broadly stable for the last three years.
Homeowners in the north and the east coast continue to pay the most for their insurance policies. They are the only two regions across the US to attract premiums that are higher than the national average.
This recent reduction to home insurance premiums has not been felt by both our age groups. Premiums for the under-50s have remained flat in the last three months. It’s only the over-50s who have benefited, with their annual policies now 0.9% cheaper than three months ago.
Older properties, those built between 1925-1940, saw premiums rise 4.4% in the last 12 months, the most of any segment. This was closely followed by houses erected this millennium (4%).
Robert J Russell – Broker Owner of InsurancePricedRight.com, concludes:
“It’s perhaps no coincidence that this period takes us through the recent lockdown where the vast majority of people were spending much more time at home. Crime rates and home claims have both declined in recent months, which is the most likely reason for this small deflation in premiums.”