The average cost of home insurance premiums has decreased by 3.6% due to mild weather.
The average premium for a new home insurance policy fell in the first quarter (Q1) of 2015, found the latest AA British Insurance Premium Index.
The data reveals that the average quote for a combined home buildings and content insurance policy declined by 3.6% (£6) to £158.66.
Furthermore, the cost of a buildings policy dropped by 3% to £112.74 and the cost of a contents policy fell by 2.3% to £60.28.
Premiums have consistently dropped over the last year, with the average cost of a combined policy down 9.6%, the average buildings policy 10.1% lower and a contents policy falling 8.2%.
The study also found that car insurance premiums also fell slightly in Q1.
Managing Director of AA Insurance, Janet Connor, says that the decreases are greater than anticipated but mirror a long period of benign weather.
She explains: “Home premiums are most likely to be affected by extremes of weather and the recent winter has on the whole been notable for its lack of heavy rain, snow, winds and extreme temperatures.
“Nevertheless, climate change is a reality leading to some parts of the world suffering catastrophic weather events over recent months. This should serve as a reminder that the weather can produce unexpected extremes and the UK is not immune.”
Connor says that the reason for the lower premiums is that claims in the last three years have been within insurers’ capabilities.
She also notes that that the average does not expose regional differences and that those living in areas most at risk of flooding will pay more for their insurance.
She adds: “The Flood Re insurance scheme, designed to enable those in at-risk homes to obtain affordable insurance cover, will help thousands of families.”1
Read more about Flood Re here: /flood-re-is-wasting-homeowners-money/