Based on an analysis of industry data, Sainsbury’s home insurance estimates that the annual cost of running a home is now around £10,048. This is as much as £1,389 or 16% higher than the equivalent cost in 2003/04.

Mortgage repayments account for around 59% of the total annual costs of running a home, followed by the money spent on alterations and improvements, which accounts for nearly 13% of the cost.

By the end of this year, the average annual gas and electricity bill could have increased by £275 when compared to January 2004, but this could be less if people shop around. Indeed, the energy regulator Ofgem estimates that over 10 million domestic customers are losing out on over £1 billion by not switching suppliers.

However, the bank, which recently launched its new and improved home insurance product with a range of additional benefits, says that homeowners could dramatically reduce this cost if they were prepared to shop around for more competitive rates on their home insurance, mortgages and gas and electricity supplies.

Karen Preston, home insurance manager at Sainsbury’s Bank said, "The costs involved in running a home are rising. This makes it all the more important for homeowners to shop around in order to make sure they are getting the very best deals available, not just on home insurance but the collective running costs, everything from your mortgage to gas supply."

Sainsbury’s home insurance has added a range of new benefits and says it can save customers up to £155 on their existing premiums. Its new features include specified items cover for higher value belongings, insurance cover for properties with up to eight bedrooms, cover for properties built before 1850, cover for student belongings as well as a new landlord policy for those with buy-to-let properties.

There’s also a free guide available at www.sainsburysbank.co.uk/homeguide which looks at how homeowners may be able to reduce the cost of running their home.