Home insurance premiums in Wales have dropped by the largest amount since 2015, with a return to pre-lockdown prices following a fluctuating year, according to new research by MoneySuperMarket.
The research includes data stretching back to 2013 and consists of millions of customer quotes for home insurance. It shows that despite the drop this year, prices are still high – with a 20% increase since 2016 in Wales. Nationwide there has been a 24% (£30) average increase nationwide since 2016.
Key findings for Wales include:
• The average combined home insurance cost as of the end of 2020 stood at £144.14 nationwide, near to the pre-lockdown price of £143.73 after rising to £155.32 during the year
• London saw the largest drop in the average cost of combined home insurance (£5.87), followed by the South East (£3.02) and West Midlands (£1.95)
• Those living in flats/apartments pay the most for combined home insurance (£149.14), with bungalows the least (£127.68)
• All regions in England, Scotland and Wales saw price drops for the first time since early 2018
Kate Devine, Head of Home Insurance at MoneySuperMarket, commented: “In 2020, we predicted that home insurance prices were likely to fluctuate based on the disruption the COVID-19 pandemic could have on the markets, and with combined home insurance dropping by the largest amount since 2018, this appears to be the case.
“Successive lockdowns and restrictions could have played their part in these fluctuations, with many people spending more time at home meaning a potential rise in accidental damage claims could also create more costs for insurers. Similarly, homeowners and landlords may not have been able to fix damaged household items as quickly as normal, which could also impact claims.
“On the other hand, spending more time at home has also reduced the risk of burglary, and means that reporting home emergencies such as leaks is likely to happen more quickly than if people were out of the house all day. All these contrasting factors are likely to play a part in the inconsistent home insurance prices we’re seeing.
“Even as prices continue to change, our advice is to shop around for the best policy for home insurance and, wherever you are in the country, you’ll be able to get the deal that’s right for you.”
You can find out more about home insurance prices and how they have changed in your area on the MoneySuperMarket website: https://www.moneysupermarket.com/home-insurance/price-comparison-index/