Homeowners overpaying on insurance

Homeowners are collectively overpaying on their house insurance by £1.7 billion a year, a study has claimed.

Households are spending an average of £113 more than they need to as homeowners prove reluctant to switch cover before the end of their current policy, Barclays Insurance said.

Premiums on household insurance can range from about £196 to £309, based on figures from May this year. This leaves those on a less competitive policy paying more than £9 extra a month.

But despite the costs of staying loyal to one provider, 85% of people do not switch their home insurance when they come to renew it each year.