UK Home Insurance Premiums Increase by 6%

According to a recent release by Moneysupermarket, UK comparison website, the cost of house insurance has increased by 6% in the past 5 quarters.

Now, the average cost of buildings and contents cover stands at £151, which is up from £142.

Let us remind that car insurance premiums increased by as much as 31% in the same time period. However, financial experts are determined that UK insurers might well continue to raise home insurance premiums to recoup the cost of severe weather conditions in winter 2010.

Another factor that might encourage insurers to raise prices is the growing amount of fraud. As such, false claims add £44 to the cost of house insurance premiums.

Commenting on the findings, Ms. Owens of Moneysupermarket said that "Things look set to get worse with the increase in prices unlikely to slow down in the coming years." She highlighted that significant increases in premiums are about to be introduced.

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