Qualified advisers answering your
Financial Questions
call 0800 092 1245

Not bricking it over home insurance

Despite the recent flooding in some areas of the UK, consumers should not be too worried about home insurance costs rising, as research has shown that premiums have actually dropped. According to the AA's British Insurance Premium Index, over the first quarter of 2007, both home buildings and contents insurance premiums dropped - a symptom of the amount of choice available in a competitive market.While the average quote for buildings insurance dropped by almost 1.89 per cent to just under £206.88, home contents insurance decreased by 1.32 per cent to £147.14.These reductions have cancelled out a number of small increases in home contents insurance. Over the previous quarter contents cover had risen by 1.26 per cent to £149.13.The results mean that home buildings premiums have fallen by 0.20 per cent year-on-year, while contents cover has dropped by 3.22 per cent year-on-year. Kevin Sinclair, managing director of AA Insurance, said that the recent flooding would be unlikely to lead to rocketing premiums: "It will take a sharp increase in the number of extreme weather events of the sort we have seen in Yorkshire and the Midlands to have an impact," he said Nevertheless, he warned: "I am concerned at the number of people counting the cost of the recent floods who say they had no contents cover while many industry experts believe that up to two thirds of those who do have cover are under-insured. Recent events show that severe weather can affect anyone so while premiums remain low, it would be a good time for people to review their home insurance."

Share this..

Related stories

Financial Guides

Financial Calculators

Our useful calculators can help you get your finances in order:

Latest News


Helpful new tax year facts that could affect you and your money

Blog | Seven helpful new 2016/2017 tax year facts that could affect you and your money. Our recent online blog shares a brief outline on how to stay up to date.

Read more

Useful Links

Popular Searches

Please Enter More Details

Enter More Details