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Bad weather sees home insurance premiums soar

Bad weather sees home insurance premiums soar

Category: Home insurance

Updated: 27/11/2012
First Published: 15/04/2011

This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

The cost of home insurance has leapt to its highest ever level as a result of fraudulent claims and the recent bad weather pushing premiums higher.

The AA has revealed that the average 'shoparound' price of buildings cover has increased to £147, rising by 14% over the past 12 months, while the average cost of a contents policy has increased by 12% to £76.

The survey analyses quotes from over 40 insurance companies, brokers and schemes against a number of different risks that are considered typical of the UK home-owning population.

The shoparound premium is an average of the cheapest three quotes for each 'customer'.

It had been thought that prices could rise even higher given the record amount of claims made over the recent winter.

During December 2010 alone, claims amounting to around £900 million were made in relation to snow and ice damage.

Claims regarding burst pipes, ice damage to roofs and gutters, and damage from melt water all increased on the previous year.

Many households which had chosen not to renew their home cover would have received an unwelcome reminder of the value of insurance.

Official figures estimate that up to a third of households have no buildings or contents cover, a dangerous game to play given the average winter damage claim amounts to over £2,200.

If you need to review your home insurance policy, or perhaps you're looking to purchase it for the first time, shopping around is the best way to lower the cost of your home insurance.

Significant savings can be made just by using a comparison tool such as that offered by our partner

After you have completed one short form, they compare the premiums offered by their panel of insurers to find the best quote for you which can then be purchased online in minutes.

Many insurers also often have special offers to keep an eye open for.

Up to 30% can be saved on Nationwide Home Insurance when buildings and contents cover is bought together – Nationwide customers get an extra 15% off too.

Compare home insurance providers

Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.