Home insurance premiums have risen for the first time in four years to cover the cost of last winter's floods, the AA quarterly British Insurance Premium Index reveals.
The average buildings insurance premium is now £134, up 1.62% and the average contents policy costs £107, up 1.44%.
AA Insurance Services managing director Kerry Richardson warned that these premiums spelled bad news for homeowners, after a period of stability.
He said: “In our view, this is the first sign that home insurers are starting to pass on losses from severe weather over the winter to their customers.”
The AA expects further quarterly increases to raise premiums by at least 5% by the end of the year.
The report also shows the cost of car insurance has soared again over the last quarter. Non-comprehensive premiums have risen by 6% over the past three months, while fully comprehensive policies have risen by 4%.
Year-on-year, non-comprehensive premiums have risen by £118 to an average of £641 from £523 in April 2000. Comprehensive premiums are up £91 from £538 this time last year, to an average of £629.
“Based on the current levels of premium inflation, third-party insurance will have risen by nearly 25% by the end of 12 months,” said Richardson. “The average cost of comprehensive insurance will rise nearly 18% over the same period.”
The AA says that, by shopping around, motorists can save more than £240 on non-comprehensive cover.
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