Wednesday, May 16, 2012

Cost of home insurance to rise by 10pc - Telegraph.co.uk

The increase in claims led to premiums rising by 8pc, according to the AA. Ian Crowder, spokesman at the AA, said a similar increase for next year is likely.

"Insurers are very concerned with the extreme weather we have had over the last few years," he said. Between snow, flooding and tornadoes, the UK's weather appears to be changing and as a result insurers are bracing for a rise in claims."

Figures from the Association of British Insurers show that the summer floods of 2007 cost the insurance industry £3bn in claims, more than five times the amount paid out in 2011. Tewkesbury, in Gloucestershire, was one of the worst hit places during flooding five years ago, with more than 1,800 households turned upside down when torrential rainfall forced them to move out of their homes and into temporary accommodation.

Last month, independent forecaster WeatherAction has also predicted the next month will be the "coldest or near coldest for 100 years" in the East of England, with cold northwesterly winds.

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