Home insurance rises 'have not materialised'

Thu 17 Apr 2008 - Published in Home Insurance

Increases in both car and home insurance that had been expected following last year's widespread flooding have not materialised, new research has revealed.

The latest AA British Insurance Premium Index demonstrates that despite the increased number of claims last year as a result of the flooding, home insurance premiums have not increased.

"Speculation that home insurance premiums would rocket because of last year's floods was clearly wrong. But I do expect premiums to continue rising over the remainder of the year," said Andrew Strong, chief executive officer of AA Insurance.

Results from the latest index suggest that the average quoted premium for building cover remains roughly the same as in the last quarter, while contents insurance premiums have risen by around one per cent.

The AA insurance index has been tracking premiums since July 1994 and uses data from 85 motor insurance providers and 77 home insurance providers.

Earlier this month, AA noted that residential streets are not as safe as they once were for parking a car on, with some 43 per cent of people reporting damage to their vehicles when parked on such roads.

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