Insurance premiums on the rise following bad weather
30 January 2011Home insurance premiums look set to rise by up to 15 per cent, as insurers deal with a flurry of claims after the recent Arctic conditions.
Claims for damage caused by the bad weather will push premiums up by 10-15 per cent, according to the Irish Brokers Association (IBA).
‘‘We anticipate significant price increases from individual insurers, though this will vary considerably as each underwriter takes a different view," said Brian McNelis, director of general services with the IBA.
He said there was already substantial variation in premiums across the home insurance market, and that the terms and conditions on each policy could also vary hugely.
‘‘It will pay to shop around or get a professional to do it for you," he said. ‘‘It’s important to trawl the market to ensure you get the best price with the lowest excess and the least exclusions."
McNelis said that cover would become increasingly restrictive in 2011. ‘‘Policy covers will be restricted for some people following recent water, flood and snow damage claims. In some instances certain benefits will be excluded."
The IBA also predicted that excesses would increase, meaning consumers would be liable for a larger proportion of the overall claim. According to the IBA, so me insurers will increase excesses from current average levels of about €150 to €500 to €1,000.More policy exclusions are also on the way.
‘‘It seems that some providers are intent on applying other exclusions to policies depending on location and other factors."
This was well-flagged, but I think people will be surprised at how much premiums will increase.