Home and Contents insurance - Why do your premiums constantly rise?

Last year the average premium for Buildings Insurance went up by 1% to

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just over £205 and the average for Contents Insurance rose by 2% to £151. But within the market we've seen some much bigger rises - for example, Norwich Union pushed up its premiums by 6%.

So what's happening? We seem to see premiums Cheap Secured Loans rising year after year. Surely with the home insurance market being so competitive, you wouldn't expect to see such inexorable price rises?

Lets look at the situation.

The average cost of claims under the buildings part of the insurance always rises in line with the cost of rebuilding your house. That's a reflection of the rising price of labour and building materials. So as these costs rise, ( Bad credit loans ) so do your premiums. And there's also the fact that cost inflation also affects the insurance companies own operating costs. They are bound to add a little extra on for that!

Then there's the British weather. We don't live in a hurricane zone as Michael Fish would be the first to point out, but nevertheless it's a fact that storms and especially floods, are becoming more frequent problems. Flood damage is particularly destructive with the average insurance claim in the £15,000 to £30,000 range. (Source: Association of British Insurers). And during the last 18 months we have seen particularly destructive floods create { life insurance } headline news at Helmsley in North Yorkshire, Carlisle, and Boscastle in Cornwall. Those events cost the insurers multi-millions.

The cost of burglary is also rising with the average claim now around £1,400. The main reason is two fold - burglars seem to find their pickings easier to come by and sell on. It seems to be down to the valuable electronic gismos that families are buying - the laptops, I pods, digital cameras, flat screen TV's and the like. The other reason is that burglars are increasingly targeting well-off neighbourhoods.

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