Home insurance costs rising

Christina Hoghton
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Christina Hoghton

It’s getting more expensive to insure your property, as premiums increase for the third successive quarter

The cost of covering your home has gone up for three quarters in a row, but it is still cheaper than it was six years ago, according to the AA.

It said that just £2 has been added to the average shoparound quote for a typical combined buildings and contents policy, an increase of 1.4% to £158.48. But this is still £30 cheaper now than in 2010.

Standalone policies have also risen: for Buildings, by 1.5% to £113.46 and Contents, 3.0% to £60.41.

Michael Lloyd, director of insurance at the AA, said: “We have enjoyed a long run of generally benign weather – and while there have been some costly floods and damaging storms, they have been fewer and less costly than insurance companies expected. As a result, premiums have been falling for some time but are now bouncing back from a historic low.

“Rising premiums I believe, reflect growing nervousness about potential severe weather claims which many climate experts predict.”

Don’t underinsure your contents

Contents insurance has risen faster than buildings, according to Lloyd, who puts it down to a combination of increasing home contents values as well as rising fraud, such as exaggerated and false claims.

He also pointed out that over time, many families may also find that their contents are under-insured. “Talking to your insurer or broker about increasing the value of your contents makes good sense,” Lloyd adds.

The cheapest region in Great Britain to insure a home is in the West and West Country which has also seen the smallest shoparound quoted premium increase at 0.9% over the quarter, to £148.11. The biggest average increase was in Wales, which is also the most costly region to insure a home: up 1.8% to £167.15.