In news that will cause little surprise to hard pressed homeowners anywhere in the UK, a recent survey has confirmed their assumptions. Homeowners looking for the best home insurance deals will find their project a little more difficult this year as a leading insurance company provides evidence that policy premiums have increased in the first quarter of 2011.
Increase across the board
The increase applies to both building and contents insurance, with buildings cover increasing less than that of contents cover. The complicated system used by the provider, involved working out the average of the three lowest quotes provided to each separate researcher working on the survey. When the figures were collated the cost of a buildings insurance policy averaged out at £147.29 and contents cover came in at £76.39, increases of 2.7% and 5.5% respectively.
Experts impressed
Experts in the industry said the figures were far better than they expected and certainly far better than the increases consumers are experiencing when looking for car insurance. One industry insider said that considering the amount of claims most insurers had experienced during one of the harshest winters for 50 years, the increases were more than acceptable, they were very good. Apparently the industry had been hit for £900 million in December alone.
The increases although appearing slight over the first quarter of a year don’t hold up so well when compared to the price of the same policy in March 2010. The difference then becomes more marked, buildings having increased by 13.6% and contents by 11.9%.
Good value for peace of mind
Burst pipes and other winter emergencies also have an effect.
Another statistic revealed by the survey was that the average claim for winter damage was over £2,000, and when this is taken into account then perhaps a figure of less than £80 for the peace of mind of knowing you are covered by home owner insurance is worth it. Worryingly though, Government figures suggest that almost a third of the population don’t bother with household insurance at all. Surely this works out to be a false economy in many circumstances, especially as flood events seem to be more and more common throughout the UK.
Fraudsters add cost to everyone
Another worrying aspect of the cost of insurance is that insurers reckon fraudulent claims increase the price of premiums for everyone by over £40 per annum, a situation that simply must be stopped.