Families hit by surge in cost of home insurance
Huge hunt for eight hikers after landslide
HOME insurance premiums are rising at their fastest rate for three years as Government tax rises take effect.
Average bills rose by seven per cent to £131 – more than double the 2.6 per cent inflation rate – in the year to July. Most of the increase is due to the rise in insurance premium tax from 10 to 12 per cent, which came in on June 1.
Prices of both contents and buildings insurance are rising fastest for people over 50, research shows.
Owners of newer properties built after 2000 are also paying lower premiums on average than customers with older homes.
Typical premiums in London are highest at £159 – 37 per cent more than the £116-a-year average in the cheapest area, the South-west.
The analysis was by Consumer Intelligence, whose data is used by the Government’s Office for National Statistics to calculate official inflation figures.
The seven per cent increase is the biggest since February 2014, when the average premium was higher at £136.
Brexit is having an impact, according to the research, with the weak pound driving up the cost of repairs using imported materials.
An increase in claims related to DIY plumbing disasters is another factor pushing up costs.
Consumer Intelligence pricing expert John Blevins said: “Several insurers are reporting a rise in claims for burst pipes.” and 200 people evacuated in the horror near the Italian border.
Initially two groups of hikers – four Germans, two Swiss and two Austrians – were missing. A third group