Cost of home insurance falls slightly
Thursday, 28 July 2011 1:52 PM
Following two years of escalating premiums, the average cost of home insurance appears to have fallen slightly.
According to the Q2 AA British Insurance Premium Index, known as the 'Shoparound Index', buildings cover dropped by 0.6 per cent to £146.35 while contents insurance decreased by 1.1 per cent to £75.53.
This follows a steady rise over the past two years that added almost 20 per cent to the cost of insuring a home.
However, Simon Douglas, director of AA Insurance, doesn't believe that this will mark the start of a sustained fall in premiums, pointing out that home insurers are suffering increases in the cost of severe weather claims as well as fraud.
"While we can do little about the weather, the creation of a new Police Fraud Unit should help insurers to significantly improve detection and prosecution of insurance fraud," Douglas said.
Douglas pointed out that according to the Association of British Insurers the number of people attempting to make claims for losses that are grossly exaggerated or non-existent has risen sharply.
"We need to persuade those thinking of swindling their insurer to think twice,” he added.
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