Home insurance 'remains cheap'

Posted : 28-01-2005

Insurers claim that home insurance continues to offer good value for money to consumers, with policies remaining constant over the past 12 months and despite the adverse weather conditions.

AA Insurance state that over the past decade homeowners have been offered notable value in terms of home insurance policies, with premiums rising by just one per cent during this period of time.

Over the past three months the AA reported a minimal 40 pence rise in the average home insurance policy, which costs £208.65, yet home contents insurance became cheaper by a few pence for the second quarter in succession.

Neale Phillips, director of AA insurance, stated that he does not expect any notable changes in the cost of home insurance in the foreseeable future.

"We expected insurance premium quotations to remain flat. This confirms that we are in a stable market and we don't foresee dramatic rises ahead," he said.

"Every time extreme weather affects peoples' homes - such as the recent Carlisle floods - insurance premium rises are predicted. The industry is certainly concerned about changing weather patterns but it will take several major weather-related claims to have a significant effect on premiums," he said.

Mr Neale stated that house burglary claims are falling as a consequence of consumers improving home security.

The insurance firm also urged consumers to shop around for cover, stating that over 30 per cent can be saved on policies by shopping online.

© DeHavilland Information Services plc

The views expressed within the article are entirely those of Adfero Ltd and are not those of BDML Connect Ltd