Buildings insurance costs soar
Wednesday, 19 October 2011 12:32 PM
Buildings insurance premiums have risen to their highest ever level, according to a survey by the AA.
The AA British Insurance Premium Index says the cost of buildings cover rose 14.3 per cent to £152.18 in the year to the end of September, continuing the upward trend that started in 2009.
The cost of contents insurance rose 5.5 per cent over the year to £77.21 while a combined policy rose 5.7 per cent to £205.55.
These figures are from the AA's Shoparound summary, an average of the three cheapest premiums.
Simon Douglas, director of AA Insurance, said the increases followed two severe winters that had caused widespread property damage throughout the UK.
"Insurers are also concerned about more frequent severe weather events such as flash floods, often in places with no flooding history, wind damage and even damage from extreme hailstorms, lightning strikes and tornadoes. One recent industry report suggests that claims for storm damage have jumped by 68 per cent over the past year."
He added that all home owners should do what they can to reduce the risk of damage this winter, with escape of water from broken or frozen pipes the biggest single cause of claims.
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