Home insurance costs likely to rise

Claire Murphy

HOME insurance costs are likely to surge in the new year as a result of our more extreme weather conditions.

Floods and big freezes have placed unprecedented pressure on insurers to pay out for damage to private dwellings.

And the industry is now expected to try to recoup some of the outflow by hiking the price of premiums.

The Irish Insurance Federation has warned homeowners to be prepared for higher charges.

According to the group, Ireland would traditionally have been seen as a cheap place for home insurance but that could now change.

In the past year alone house insurance costs have jumped 12pc and over the past decade the increase has been a massive 60pc.

The Irish Brokers Association is advising consumers that the best way to keep their costs down is to shop around.

Its chief, Ciaran Phelan, said it was too early to predict what kind of price hike might take place in 2011.


But he said: "Shopping around invariably saves people money on home premiums, which is something consumers should bear in mind in 2011."

Other experts say that homeowners should think about how much insurance they require.

Although property values have fallen dramatically in the past two years, many people have not reduced their insurance cover.