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Home insurance costs rise to highest levels ever

Home insurance costs rise to highest levels ever
Date of Publication: Wednesday, 26 October 2011 11:54

Research has shown that the average price of home insurance has risen to its highest ever level.

After moderate increases in recent years, the AA British Insurance Premium Index has revealed that combined home and contents insurance policies now incur quotes of over £200.

It is the harsher winter conditions experienced in the last two years that are to blame, with buildings insurance leaping 23% in that period.

Contents insurance has remained relatively stable in the past decade, but this too suffered a rise of almost 6% this year. More freezing conditions in the upcoming months could lead to premiums rising further still.

The AA urges homeowners to take all necessary precautions to reduce the risk of damage to their houses. They have also stressed to insurers the importance of having sufficient reserves in place to accommodate for weather damage related claims. It does not foresee a drop in the price of home insurance in the near future.

Meanwhile, recent data from the Post Office revealed this week that over 11 million Brits do not have home contents insurance. In the region of four million homeowners would only consider contents insurance after they had been burgled.

A quarter complained that insurance was too costly, while one in ten described it as a waste of money. The AA's warning, however, suggests that widespread structural damage to property has led to the increase, and that anticipatory and protective measures need to be taken.

Why not check out Which4U's insurance tables today to see if you can find affordable insurance or better your current deal?

Wednesday, 26 October 2011 11:54
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