Feeling the heat: how extreme weather is pushing up UK home insurance costs
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“As weather conditions continue to be more extreme in the UK, it’s likely more people will be making claims for damage to their property or possessions,” says Harwood.
He says that the cost of living crisis means people are more likely to turn to their insurance policy to cover costs rather than paying for it themselves, even in the case of smaller claims.
“Because of this, prices could increase as insurers have to adjust their pricing to account for the increase in claims. And this is not just because of the frequency of claims, but the cost of claims too. Everything is becoming more expensive, so repairs and replacements are likely to cost insurers more to cover.”
David Joyson, the chief customer officer at the insurance provider Homeprotect, says extreme weather is “definitely a key factor” in rising premiums. He points to the growing number of related claims and says “if your area has more properties prone to these issues, your home can be seen as more of a risk to insure, so even if you haven’t been directly affected, your premium will likely be higher”.
The warning comes at a time when premiums are already increasing – the average price paid for combined home buildings and contents insurance in the first three months of this year was £315, up 6% on the same time in 2022, according to ABI figures.
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