25 April 2013

Posted by Discount Insurance on Thursday, April 25, 2013
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The average home insurance premium in the UK is still falling, new figures show.

Home insurance premiums are still falling around the country, new data shows, despite freezing temperatures and higher flood risks.

Regardless of last year’s floods costing insurers an estimated £1.2 billion, premiums for buildings, contents and combined policies all fell during the first quarter of this year, according to the AA Shoparound Index.

Buildings insurance is down 2.6 per cent compared to the last quarter and 1.7 per cent over the last twelve months. Contents policies have fallen by 1.7 per cent over the last three months and 2.4 per cent over the year, while combined policies have dropped by a smaller 1.7 per cent compared to the same period in 2012.

But Simon Douglas, director of AA Insurance, points out that this figure is likely to mask wide variation between areas that suffered flooding and those which avoided the damage.

Owners of flood-damaged homes can still find insurance thanks to a ‘statement of principles’ agreed between the government and insurance providers, though their premiums are likely to be considerably higher.

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