Home Insurance prices up 3% year on year

We’re now paying 3% or €16 more on average for our home insurance than this time last year, the latest benchmark review of combined home insurance premiums (building and contents) by AA Ireland reveals.  The rise coincides with the introduction of a further 2% levy by the Government on all non life insurance policies on January 1^st. 

AA Home Insurance also suggests that a growth in domestic burglaries and the flood bill from last October are likely to be affecting prices.  Based on the most recent available data, quarter three 2011,  burglaries and associated crimes were up 9% and 14% respectively when compared to the same periods the previous two years.[1]  3,532 household claims at a cost of €58 million were also made as a result of October’s flash floods.[2]     

The average price of a combined home insurance policy based on the findings of the AA Home Insurance Premium Index is €482 up from €466 the previous year. The AA Home Insurance Premium Index also reveals that Dubliners are paying considerably less for their home insurance on average than those living outside the capital.  The average premium price in Dublin, as calculated at the beginning of March is €455 compared to €511 for the rest of the country.  This equates to a gap of 12% which is notably higher than this time last year when it was just 4%. 

“Homeowners are facing a lot of extra charges these days – the €100 household charge, higher electricity costs, increased bin charges and now the additional levy on home insurance premiums.   It can feel painful paying for something as intangible as home insurance but we’d definitely advise against cancelling.  The average claim from October’s flooding was over €16,000 and was a lifeline to so many people at a tough time.”  Says Conor Faughnan, Director of Policy, AA Ireland.

Ends

Notes to the editor

The AA Insurance Premium Index

The AA Ireland Insurance Premium Index, launched in January 2011, tracks the quarterly and annual movement of home insurance premiums.  We began tracking the market via the systematic survey of average premium for combined home insurance premiums at the beginning of 2011.  The index uses a basket of 200 home insurance risks that is representative of the Irish home owning public. 

It obtains premium prices against these risks for combined policies (buildings and contents) from a wide range of insurance providers who operate in the Irish market place.  The Index tracks a market average premium (average of all quotes received).

Notes to the editor;

Fig. 1 Market average premiums for combined home insurance policies (Based on a basket of 200 risks quoted for by 9 insurance providers):

[2] Data sourced from the Irish Insurance Federation.  Press release issued 12/01/2012: www.iif.ie/MediaPublications/PressRelease/tabid/119/language/en-GB/Default.aspx