Home insurance premiums have risen for the third consecutive quarter, according to the latest Automobile Association (AA) Benchmark British Insurance Premium Index ending 30th June. Both standalone policies and combined policies have risen, although they remain significantly lower than the same quarter in 2010 when typical combined policy premiums reached a staggering £30 more than they cost today.
Michael Lloyd, director of insurance at the AA, credited mild weather for the decline in policy costs that started in 2010. However, premiums are bouncing back due to concerns about potential severe weather claims predicted by climate experts.
The index also revealed that contents insurance has increased at a faster rate than buildings insurance, although both have seen price increases. Lloyd blames a combination of increasing home contents values and rising fraud, including exaggerated and false claims.
Those living in properties built before the 1920s saw higher premiums than those in more modern homes. Yet, ironically, homes built after 2000 saw the biggest premium increase. Flats were the only property type to see a decreased quote for a combined policy, with a fall of 1.8 per cent to £171.41.
Although prices are going up, there are some tips you can follow to keep those home premiums low:
- Increase security – You may get a reduction for joining your local neighbourhood watch scheme. Consider installing British Standards Institution (BSI) approved locks on all outside doors and windows. Also, you could get a discount for installing a National Approvals Council for Security Systems (NACOSS) alarm.
- Check for a no-claims discount – If you don’t claim anything for a few years, you may get a discount.
- Pay annually – Paying your premium annually instead of monthly may save you money.
- Combine buildings and content insurance – You could negotiate a cheaper price if you purchase both buildings and content insurance together.
Rest easy knowing that Bond Lovis Insurance Brokers will do everything to ensure your cover is as effective and affordable as possible.