Brits should expect home insurance rises

Brits should expect their home insurance premiums to rise this year after a particularly harsh winter, it has been suggested.

According to the Association of British Insurers (ABI), the extreme weather throughout much of December and January has led to policy providers paying out £650 million for around 335,000 claims.

While, £395 million of this was for motor insurance claims, £255 million was handed over for damage to homes and business property, meaning insurers may be out of pocket and be forced to raise prices.

British Insurance Brokers' Association technical service manager Steve Foulsham suggested that the ABI figures could provoke premium hikes over the next year.

"Once we know all the figures it wouldn't surprise me one little bit if it leads to some sort of rate hikes in the market, because of the sheer volume of claims," he said.

Mr Foulsham added that the harsh winter was always going to result in a rise in pay outs and that insurers would now look to recoup their losses.

Posted by Cheryl Stevenson