A recent report has shown how the floods that hit various parts of the UK earlier in the year have resulted in the cost of home insurance going up considerably, although the level at which insurance has risen is not as high as some industry professionals had predicted shortly after the flooding. Still, states the AA, the cost of insurance has risen at its fastest pace in the last decade, and many homeowners are now having to pay for the damage and cost of claims from the June and July floods.
Recent figures show that since the terrible floods and torrential rain earlier in the summer the cost of buildings cover has gone up by around 3%. The cost of contents insurance has gone up by around 2.3%. Although these premium hikes have made a difference to the amount that consumers are having to pay for their home insurance, with the average cost of building cover at £215 a year and the average cost of contents cover at £150 per year, it is not as bad as the 10% rises that had been predicted by some experts following the floods.
However, AA officials have stated that insurance premiums may continue to rise over the coming months, so the premium hikes may not be over quite yet. Insurance companies took massive financial hits with claims totalling around £3 billion.
One AA official stated: “We now see the result of that devastation reflected in premiums as insurers meet the cost of drying out and repairing homes as well as temporary re-housing of families while their homes were made habitable again.”
There are a number of insurance companies, such as Nationwide and Sainsbury’s, that are currently offering special deals on buildings and contents insurance bundles.
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