Home insurance policy costs have increased 25 per cent over the last three years, new research has revealed.
The average combined buildings and contents home insurance policy now costs £144.70 a year, 25 per cent more than 2016 when it stood at £115.80, according to data from MoneySupermarket.
Average premiums have risen by 13 per cent in the last year alone.
The rise has been pinpointed to Britain’s now more volatile weather, with insurers concerned climate change will trigger more frequent and violent bouts of extreme weather, the comparison website says.
Price inflation has been driven by a number of weather-related factors, including an increase in subsidence claims, which affects buildings insurance, following last year’s dry summer.
Claims for flood and storm damage, which can trigger claims for both buildings and contents insurance policies, have also been blamed for the change.
Insurers are concerned that there will be more floods, storms and associated damage thanks to more volatile weather in Britain, according to MoneySupermarket.
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Londoners fork out the most for Home Insurance!
Those living in the north of the country are paying less than the rest of the UK to insure their home.
Households in Sunderland and Durham pay the least at £118.97 and £119.22 respectively whilst Newcastle residents pay £121.77 on average.
They are followed by those living in Stoke-on-Trent who pay £122.08 and Carlisle residents who pay £123.20.
Meanwhile, Londoners pay the most with those in North West London paying £268.10 each year – more than twice as much as a Sunderland resident.
Those living in South West London are paying just under at £257.06 whilst North Londoners are forking out £253.07.
This could be due to higher burglary rates in affluent areas and higher building and repair costs.
Welsh residents, overall, are paying an average of £129 a year whilst those in Northern Ireland pay significantly more at £171.
However, those in the Midlands are paying a similar amount with residents in the West Midlands paying £132 whilst those in the East are paying £134
Premiums are now substantially higher than a year ago. In the third quarter of 2018, the average premium was £128, meaning there has been a year-on-year increase of £17 – just under 13 per cent.
Buildings-only policies have also seen sharp premium increases with average year on year prices rocketing by almost 19 per cent, from £90 to £106.
Earlier this month, the FCA ruled that around six million customers are negatively impacted by insurers’ dual pricing practices because they automatically renew with the same firm rather than shop around – meaning they’re potentially missing out on £1.2billion a year in savings.
With some insurance providers reserving their best offers for new customers, it’s worthwhile shopping around when renewing to make sure you get the best deal for you.’
Please call us on 0207 691 2409 for an appropriate quotation.
