Insurance premiums for home insurance have risen in the past three months, according to the latest figures from AA Insurance.The AA’s British Insurance Premium Index showed that, over the last three months, average quoted premiums for buildings insurance rose by 1.4 % to £218.60 for an annual policy. This follows a rise of 3% over the previous quarter – the largest increase since the index began in 1994. Contents premiums rose by 0.4% to £150.57 over the same period. These rises reflect domestic property claims totaling £759m following last summer’s floods.

Car insurance premiums also rose. Comprehensive cover jumped by 2.4% and third-party, fire and theft cover increased by 1.4% again over the last three months, according to AA Insurance. Buyers can now expect to be quoted £629.04 on average for an annual comprehensive policy and £628.60 for TPFT insurance.

John Close, spokesperson for the AA, said: “The average cost of each of the 145,000 claims made as a result of 2007’s flooding is approaching £52,000 and the insurance industry has responded sympathetically towards customers who suddenly found themselves homeless.

“Buildings insurance premiums are at their highest since the index began but I’m surprised that premiums have risen so little over the past quarter. I hope that the Government’s Climate Change Bill includes robust provisions to ensure that new buildings are more flood and storm resilient, particularly after the renewed flood threats of the past few days.”

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