The average cost of buildings insurance for homeowners 

increased by 1% last year, bringing the cost of a year's 

insurance to little over 205. Contents insurance also increased, 

this time by 2%; the typical homeowner now pays 151 for it 

each year. Norwich Union, for instance, increased its costs by a 

staggering 6% last year, while other lenders are raising prices 

even more.

The query is, "Why?" Since there is so much rivalry, you might 

anticipate prices to be decreasing rather than rising, but as we 

will describe later, there are other forces at play.

No. 1: The price of repairing or rebuilding a dwelling.

Prices are rising when the insurance company estimates how much it would cost to restore your home since labor and building supplies are becoming more expensive. This is a result of inflation, which also has an impact on the insurance company's operational expenses. Naturally, insurers must take these costs into account because wages, bills, and office rent are all rising year.

No. 2: The climate

Whether it is caused by global warming or not, the British 

weather is becoming more and more erratic. However, it is true 

that during the past several years, we have seen a lot of extreme 

weather. The hurricane of 1987 was an unusual occurrence, but 

flash floods like the ones that occurred in Carlisle, Boscastle, 

and Shelley, North Yorkshire, are becoming more frequent. 

According to the Association of British Insurers, the average 

insurance claim for flood damage might be between $15,000 and 

$30,000, significantly cutting into the earnings of the insurance 

sector. Floods actually cost insurance companies millions of 

dollars each year.

Number 3: Burglary

Burglary claims have increased over time and currently average 

over 1,400. The two main causes are:

Our homes are filled with expensive electronic devices that may