Flood threat 'pushes up home insurance'

Posted : 17-07-2008

The threat of floods appears to have pushed up the cost of home insurance premiums, according to the latest figures.

In the AA's British Insurance Premium Index, prices saw a rise in the cost of an average home insurance policy by 4.3 per cent.

However, the Shoparound Index, which works out the average of the lowest premiums, reported a 22 per cent rise since July 2007.

Last year, the average price was £103.60 compared to £126.29 this year.

Simon Douglas, director of AA Insurance, said: "I believe that the sharp rise over the past year indicated by the Shoparound index suggests that those insurers offering the lowest premiums have revised their rates to take account of predictions of more flash flooding events."

Meanwhile, a recent survey by More Than has shown that 56 per cent of home insurance customers do not know the total value of the items they keep in their house.

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