The cost of buildings and contents insurance has risen 0.5% in the past three months to an average premium of £151, research from Consumer Intelligence has shown.
Despite this, further research uncovers that 14% of homeowners are now considering cancelling their contents insurance given they are now mainly based at home, and 11% who are suffering financially as a result of the pandemic are looking to reduce or cancel their policy entirely.
Unlike the car insurance market, where there’s fewer vehicles on the road and less claims being made, people are spending more time at home.
The UK’s Office for National Statistics says that 49.2% of adults in employment are working from home now. On top of that, six million British workers have been furloughed to sit on their own couch.
John Blevins, pricing expert at Consumer Intelligence believes the pandemic will not only change the way we live, but also the way we interact with our insurance policies.
He said: “There’s an expectation that potentially more claims will be made, but to counter that you are now more likely to spot a burst pipe early so damage limitation could be applied.
“This potential change in claims activity and a possible reduction in volumes due to policy reductions and cancellations force insurers to amend their pricing strategies. However, it is too early to say which way we’ll see pricing go; we continue to watch carefully with interest.”
The priciest postcodes for home insurance continue to be in London and the South East. With £205 average premiums, London is by far the most expensive region to insure your home with the South East following in second at £157 for an annual combined policy.
The North East remains the cheapest region in the UK, with a typical premium costing just £133.