10% Rise in the Cost of Building Insurance Since Last June
The average cost of residential buildings insurance has risen by 10% in the past year as research from AA Insurance shows.
The AA suggests the climb is due to an increase in claims related to recent troublesome weather, due to climate change, such as flash floods and storms. Rising for the sixth successive quarter the cost of annual buildings cover is now £223.92. Despite this, those who take the time to shop around could end up paying less.
Claims have risen 15% in both value and number, across the UK in places where extreme weather conditions were previously non-existent. AA Insurance director, Simon Douglas, said: "Insurers are beginning to reflect concerns about climate change … the industry is expecting rising cost and frequency of claims for flooding, subsidence and storm damage."
With insurers now monitoring local crime rates, contents insurance premiums have seen a fall in the past year. The cost of cover now averages at £122.34 for the year, notably down by 3.2%. However, those living in highly ranked crime areas (see 'Top 20 Burglary and Theft Hotspots in the UK') should expect a rise in premiums.
There is a visible improvement in the success rates of insurers identifying and dealing with potential fraud, as the number of fraudulent claims detected is up 30% compared to last year.
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