A recent survey conducted by the AA Insurance group has estimated that the cost of home insurance rose by 10% over the course of 2011.
Breaking down its findings, AA Insurance discovered that buildings insurance premiums rose by 3.1% from an average of £143 a year in 2010 to £156 in 2011, while contents insurance also went up, this time by slightly more than buildings cover, increasing by 4.4% to an average £80 a year in just the last three months of 2011.
An increase in the number of home insurance claims, coupled with an increase in crime levels, is believed to be responsible for driving the cost of home insurance upwards. The past two winters have also seen the insurance industry hit with a high level of claims for winter weather damage to property including burst pipes and caused by plummeting temperatures and storm damage and flooding, which has caused insurers to raise their premiums as a result.
The British Crime Survey also showed that crime levels have increased in England and Wales, with the rate for domestic burglaries in these areas up by 10% in the last 12 months to June 2011. Insurance experts believe the increase in the number of domestic burglaries is linked to the economic pressure much of the country is currently experiencing.