Home insurance premiums up 6%

Home insurance premiums have increased 6% on average since January 2010, according to moneysupermarket.com.

Data from January 2010 to March 2011, collected by the price comparison website, shows the typical cost for buildings and contents cover has risen from £142 to £151.

It put the increase down to recent severe winter weather and flooding incidents, which it says increasingly appear to be a trend rather than one off events.

Julie Owens, head of home insurance at moneysupermarket.com 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.

With this in mind, we urge anyone looking for a home insurance policy to shop around and ensure that they aren't paying over the odds for their home insurance cover."

She said the rise in fraudulent claims was also hitting policy holders hard.

"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 only way for consumers to ensure they get a good deal is to compare prices and ensure that they get the right level of cover they need at the lowest possible price."