Home insurance costs have increased by almost six per cent in only one year, noticeably by an increase in building insurance from an amount of £142 in January 2010 to £151 in January 2011. Although the rising costs in home insurance didn’t synchronize with the ones for car insurance, the weather this year made possible this increase in costs, reaching 2.5 pence each day.
Chief of home insurance at moneysupermarket.com, Julie Owens revealed a pessimistic prognosis; that there isn’t a reason for getting high hopes because the costs won’t cease to rise for the following years. She stated: “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.” Unlike home insurance, car insurance costs have risen with an average of 31% since 2010. The same Julie Owens said: “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.”
Think Money’s insurance expert said: “Like many other costs of living, home insurance seems to be on the rise, which is all the more reason for people to search around and make sure they find the best deal for their circumstances Online comparison sites can make this easy to do, but it’s also a good idea to check with individual insurers or with an insurance adviser to see if there are any other good deals available.”
Weather seemed to be the main cause of this increase in home insurance costs. Houses have suffered from floods and a harsh winter. People are encouraged to make repairs to their home to reduce the cost of home insurance. The best advice is to install burglar alarms or any other security measures in order to escape loosing money from insurance.