Home insurance premiums up 3%

The average cost for home insurance in the UK has increased by 2.7% in the last six months, almost double the rate of inflation, according to research from data analytics firm, Consumer Intelligence.

Average premiums are currently £139 with Londoners paying the highest premiums at £184 a year. The North West is the only other region above the national average.

The UK’s cheapest regions are the North East (£123) and Wales (£124).

Losses from storm damage and the recent flooding across the country may have been one important factor in the rise of premiums.

The Financial Conduct Authority is considering banning dual pricing practices, which could also impact the evolution of prices in the coming months.

Product manager at Consumer Intelligence, John Blevins said: “There’s evidence insurers are dealing with dual pricing already due to the negative publicity and inevitable requirements coming in the near future.

“One of the impacts is that new business pricing – the key content of our price index – is likely to increase to narrow the difference between new business and renewal costings,” he added.

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