Home Contents Premium Costs Down 21 Per Cent as Theft Claims From British Homes Decline

Apr 25, 2013, 12:00 ET from moneysupermarket.com

CHESTER, England, April 25, 2013 /PRNewswire/ --

  • Nine per cent drop in home insurance claims rate for contents theft since spring 2010
  • Newport postal area has witnessed the largest reduction in home contents thefts since 2010
  • Summer and autumn are peak season's for theft claims

The rate of claims being made for contents theft from British homes is on the decline, and is reflected in lower premiums for homeowners, according to analysis of over 5.8 million home insurance quotes run on MoneySupermarket.[1]

The analysis of quotes from 1 March 2010 to 28 February 2013 reveals the rate of claims for contents theft has decreased by nine per cent during the past two years, from 1.25 claims per thousand quotes to 1.14 per thousand quotes. During the same period, home contents insurance premiums have fallen from an average of £93.81 in 2010 to £74.20 current - a fall of 21 per cent. Similarly, the cost of combined buildings and contents insurance has dropped 11 per cent from £173.70 to £155.14.

Top 10 Postcodes which have seen a decline in theft from homes

The analysis also identifies the postcodes in the UK that have seen the largest decline in the number of content theft claims. The Newport postal area (NP) has seen the highest reduction, with the number of claims falling from 7.9 per 1,000 quotes to 4.9 per 1,000 in 2013.  East & East Central Newport (NP19) being the district most improved. Nottingham and Stockport postcodes (most notably NG9-Beeston and SK8-Cheadle) also saw significant reductions in the number of claims since 2010 with them sitting second and third in the top ten respectively.

                     Postal Area          2010       Theft
                                        Contents     Rate
                   (Postal District    Theft Rate
    Improvement    showing largest      (Postal     (Postal
        Rank            fall)            Area)       Area)
         1       Newport (NP19)           7.9          4.9
         2       Nottingham (NG9)         6.1          4.5
         3       Stockport (SK8)          6.2          4.7
         4       Birmingham (B26)         7.0          5.4
         5       Wolverhampton (WV14)     7.5          5.8
         6       Huddersfield (HD3)       8.3          6.6
         7       Dudley (DY8)             5.6          4.5
         8       Oldham (OL4)             5.9          4.8
         9       Bradford (BD6)          10.1          8.2
         10      Reading (RG30)           6.2          5.1

Table: Areas with higher than average contents theft claims in 2010 ranked by percentage reduction in claims to end of 2012; and highlighting  the district with largest claim reductions within each area. Theft rate calculated as annual contents claims for theft per 1,000 quotes.

The analysis also shows the peak period for theft claims being made from the home with summer and autumn seeing a significant spike in claims compared to winter and spring months, showing that theft from the home increases when the weather gets warmer, rather than when the nights are longer.

Hannah Jones, home insurance expert at MoneySupermarket, said: "It's really encouraging to see number of home insurance claims relating to theft is falling and that this is being passed on to consumers in the form of lower premiums for contents cover. With many households struggling as a result of the rising cost of living, the ability to protect your property and possessions as a result of cheaper premiums is welcome.

"The analysis highlights an interesting trend in the fact thefts from the home actually increase in summer and autumn before dropping again in winter and spring. Although you might expect thefts to increase in the winter months when the nights get longer, the opposite actually happens. This may be due to the fact more properties are empty during the warmer months, and windows and doors are more likely to be unlocked when the weather is better, with opportunistic thieves taking full advantage when our guard is down.

"It is therefore important that people bear this in mind and take adequate measures to reduce the risk of theft during the summer months. Make sure windows are not left open when you are away from the property and that the door is locked when you are enjoying the sunshine in the back garden or patio. Although the number of thefts from the home is falling and premiums are doing the same overall, it is important not to be complacent about the risks as any claim you make on your insurance as a result of being burgled will affect the amount you pay at renewal.

"In order to capitalise on current low home insurance prices, it's crucial people shop around to ensure they get the best possible deal on cover. Finding the best deal on home insurance is quick and easy to do and the average annual saving made by those using MoneySupermarket.com is £106."

Notes to editors:

[1] Based on 5.8 million home insurance quotes from 1 March 2010 to 28 February 2013.

Average savings of £106 on home insurance with MoneySupermarket.com  Based on Online independent research by Consumer Intelligence during 01 March 2013 to 31 March 2013.

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SOURCE moneysupermarket.com