Are home insurance premiums set to rise?

November 13, 2015 | 7years | Insurance News

Over the last year or so, homeowners have been enjoying a gradual fall in the cost of their home insurance policies: indeed, according to research carried out by Consumer Intelligence, the price of the five most competitive policies has fallen by 12.9% since February 2014.

However, the good times could be drawing to a close as the effects of the Government's updated Insurance Premium Tax begins to make itself known.

What goes down, must come up

The latest findings by Consumer Intelligence have revealed that in the year to September, the average cost of home cover continued to reduce, being down by 5.8% to a typical price of just £114. Over-50s enjoy the lowest premiums, which average around £106, while those under the age of 50 pay around £122 per year.

This has been attributed to a reduction in the number of burglaries, as well as falling claims numbers for flood and storm damage thanks to milder weather conditions. However, the pace of these falls has been slowing: in the three months to September, prices only fell by 1.7%.

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