The typical quote for home insurance policies rose by 11 per cent over the course of 2011, says a new report.
In the last three months of the year average buildings insurance premiums rose 3.1 per cent to £157, according to the latest AA British Insurance Premium Index.
This is an annual increase of 9.5 per cent.
Meanwhile, contents insurance premiums rose by 4.4 per cent between October and the end of the year to an average of just over £80, an 11.2 per cent rise on the end of 2010.
The typical price of a combined buildings and contents insurance policy rose by just 5.6 per cent over 2011 to £211, an increase of 2.9 per cent in the final quarter.
The figures also highlight the fact that buying a combined policy can prove significantly cheaper than purchasing the two separately.
Bad weather & economic pressures
Simon Douglas, director of AA Insurance, said: “Storm damage, flooding and burst pipes are top of insurers' list of worries, following two harsh winters and increasingly frequent severe weather.
“In addition, economic pressures result in more theft claims."
According to the British Crime Survey, domestic burglary in England and Wales grew by 10 per cent over the 12 months to the end of June 2011.
Douglas added: “The premium increases we have seen over 2011 reflect both past losses and concern about future claims."
More rises in 2012
The AA expects home insurance premiums will continue the upward trend over the coming year, with policies expected to rise in price by between 5 and 10 per cent in 2012.
This is a view shared by advisory firm Deloitte in its recent report on home insurance prices.
Douglas added: “I expect that by this time next year, home premiums will have risen by somewhere between 5 and 10 per cent.”
But he said that the cost of home insurance had historically remained fairly static.
“Between 1994, when the AA started tracking home premiums, and January 2009, the average quoted premium for a contents policy had risen by less than 1 per cent while buildings had risen by less than 8 per cent.
"That compares with a more than 100 per cent increase for a car policy over the same period.”
