Rise in Home Insurance premiums

Home Insurance Premiums have risen since the beginning of the year according to research by the AA.

Home Insurance Premiums have risen since the beginning of the year according to research by the AA.

The average price of a combined home insurance policy, building and contents, in Ireland increased from €466 during the first quarter of the year to €494 during quarter two equating to an increase of 6%.

News of this increase comes from a new quarterly home insurance index launched by AA

Insurance which has been tracking a fixed basket of 200 home insurance risks, representative of the Irish home owning population, since the beginning of the year. In total over 1,800 quotes sourced from nine different insurance providers were recorded and analyzed during the first and second wave of the index allowing the AA to calculate the market average premium for both quarters.

“While home insurance premiums have increased since the beginning of the year, homeowners are still getting value for money when you think of it in the context of the two consecutive bad winters we’ve had and the damage they caused to Irish homes,” said John Farrell, Director of AA Ireland Insurance.

“Last December alone insurers in Ireland dealt with almost 25,000 claims from private households, the majority relating to burst pipes1. Considering the pressure this volume of claims has placed on the industry and concerns about what the coming winter has in store, I would consider last quarter’s increase to be a necessary evil.”

The price of a policy outside Dublin rose to an average of €518 during the second quarter of

2011 up €27 from €491 during quarter one.

The average price of a premium for a property insured for less than €250,000 rose by an average of €35 to €459 during the second quarter of twenty eleven. Premiums for the higher sum insured bracket also showed an average price increase of €21 up to €579.