Home insurance premiums expected to rise

Tue, 24 Jan 2012

The price of home insurance policies is likely to increase throughout 2012, judging by one expert's comments.

John Portwood, personal lines insurance broker at Portwood and Co - which was established in 1963 - noted providers are having to consider a number of factors when calculating the cost of their premiums.

The industry figure explained insurers are attempting to recover from the bad winter seen last year, while the economic downturn is likely to have contributed to an escalation in fraudulent insurance applications.

However, Mr Portwood reinforced the necessity of home insurance, stating: "Homeowners should remember that their home is their largest single investment, the one where they stand to make the greatest loss if they don't insure it correctly."

He observed individuals will not care how much their premium cost them when it comes to making a claim.

In addition, customers are always likely to see an increase in these payments as a result of the usual rise built into the system, which occurs due to index linking - a hike in the premium because of the sums insured going up with inflation.
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