Moneysupermarket have discovered that home insurance is the latest essential cost to be hit by an inflation busting price increase.
They found that between January 2010 and March 2011 prices had risen by 6%, taking the average home insurance premium from £142 to £151.
Whilst the price of petrol and car insurance is rising quicker, this is the latest in a long line of knocks for the average homeowner trying to survive during the recession.
Julie Owens from the company said, “The cost of insuring homes in the UK is steadily on the increase.”
“Unfortunately for consumers, things look set to get worse with the increase in prices unlikely to slow down in the coming years. Although it’s doubtful the percentage rise in home insurance premiums will match that of car premiums, it wouldn’t be a surprise if we got to ‘double digit’ percentage increases.”
The rise in home insurance premiums has been attributed to an increase in fraudulent claims, which Legal and General claim will add an extra £44 a year to every persons home insurance in the UK.
Julie added, “The amount of fraudulent home insurance claims is really shocking; there are now around 170 per day. It is a shame that dishonest consumers are forcing up costs for everyone. This has resulted in many insurers no longer promoting incentives or offering a discount on their products.”
The average homeowner is left footing the bill for those who are taking advantage of their policies. Unfortunately home insurance is still an essential product.