The latest British Insurance Premium Index from the AA shows that the cost of home buildings cover rose by 3.86% over 2001, while contents premiums were up 4.72%.
For the final quarter of 2002, home buildings and contents premiums were up by 1.08% and 1.07%, respectively.
The AA said that on average, householders paid nearly £137 for buildings cover and £110.52 for contents.
It added that by shopping around, average premiums could have been as low as £94 and £72, respectively.
AA Insurance Services managing director Andrew Briscoe said: "It remains to be seen what the weather will do for the rest of the winter, and we could see the levels of flooding that hit many homeowners and insurers last year.
"However, we would expect a rise of at least 7% in 2002, as premiums are still at an unsustainably low level."
The British Insurance Premium Index gives a quarterly update on the price movements of home insurance, based on 50 risks each for buildings and contents cover.
