In an attempt to recover underwriting losses, insurers are set to raise the cost of home insurance by four times the rate of inflation.
According to reports Royal and Sun Alliance plans to increase home insurance premiums by 10% while Legal and General (L&G) will raise its charges by an average of 7.5%.
Under 30s and residents of flood-prone areas will face the steepest increases with some premiums going up by 40%.
The AA predicted an average rise of 6% for home insurance over the next year, according to their premiums index. Insurance Times reported last month that AA declared that premiums for home insurance were increasing below the rate of inflation during the last quarter.
A spokesperson for L&G said: "General rebuild costs are going up according to the Royal Institution of Chartered Surveyors, which means insurance premiums are up too."
"The rise comes despite a decline in the overall amount of burglaries and number of subsidence claims."
