The cost of home insurance has fallen over the last year according to the Association of British Insurers (ABI) latest Average Quarterly Household Premium Tracker.

Based on information from ABI members who cover 90% of the home insurance market it tracks the price paid for household buildings, contents and combined insurance.

During quarter 4, 2014, the tracker shows the average annual premium paid for building insurance was £230 or £4.43 a week. This was down 4% on the previous quarter and a fall of 6% over the year since quarter 4, 2013.

For contents insurance, the average annual premium paid was £124, or £2.38 a week. This was 4% less than the previous quarter and down 5% over the same quarter a year ago.

The average annual premium paid for a combined buildings and contents policy was £291, or £5.60 a week. This was down 1% on the previous quarter and fell by 3% over the year.

Mark Shepherd, the ABI’s manager for general insurance, said: “There is no substitute for home insurance. Last winter’s floods dramatically highlighted the value of insurance, with insurers dealing with over 13,000 claims from flooded property owners. With the average domestic theft claim of £1,600, and average cost of dealing with subsidence running at £6,900 home insurance is outstanding value for money.

“The expertise of insurers in assessing, planning and pricing for unwelcome events, such as bad weather, ensures that millions of families are benefitting from very competitively-priced home insurance that is protecting them from many of life’s unexpected and unwelcome events.”