Data from January 2010 to March 2011 shows the average cost for home insurance has increased 6 per cent or 2.5p per day, taking the typical cost for buildings and contents cover from £142 to £151.*
Although the price of home insurance isn't yet rising at the same rate as car insurance, which is up by 31 per cent on 2010 levels, insurers are facing the cost of last years huge winter repair bills for the freezing winter weather** and the costly clean up from incidents of flooding.*** These severe weather occurrences now appear to be a trend rather than a one off event, which all add to the cost of premiums for consumers.
Julie Owens, head of home insurance at moneysupermarket.com said: “The cost of insuring homes in the UK is steadily on the increase. Unfortunately for consumers, things look set to get worse with the increase in prices unlikely to slow down in the coming years.”
Julie Owens, head of home insurance at moneysupermarket.com said: "The cost of insuring homes in the UK is steadily on the increase. Unfortunately for consumers, things look set to get worse with the increase in prices unlikely to slow down in the coming years. Although it's doubtful the percentage rise in home insurance premiums will match that of car premiums, it wouldn't be a surprise if we got to 'double digit' percentage increases.
With this in mind, we urge anyone looking for a home insurance policy to shop around and ensure that they aren't paying over the odds for their home insurance cover."
Another factor hitting policy holders hard is the rise in fraudulent claims. According to data from Legal and General, false claims add around £44 to the cost of every premium sold, meaning honest home owners are footing the bill for those who are cashing in on their insurance claims.****
Julie Owens added: "The amount of fraudulent home insurance claims is really shocking; there are now around 170 per day. It is a shame that dishonest consumers are forcing up costs for everyone. This has resulted in many insurers no longer promoting incentives or offering a discount on their products. The only way for consumers to ensure they get a good deal is to compare prices and ensure that they get the right level of cover they need at the lowest possible price." For the latest updates PRESS CTR + D or visit Stock Market news Today
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