Erratic Weather Conditions Around The World Could Lead To Rise In Home Insurance Costs
Home insurance premiums could rise by up to 15 per cent in the next year because of unpredictable global weather conditions, warns the Irish Brokers Association (IBA). The organisation issued a statement urging all homeowners to review the own home cover to make sure that they were getting the best value for money premium possible.
The IBA represents 700 insurance broker firms across Ireland and their director of general services, Brian McNelis said, “Reinsurers have inferred that rates will be rising on home insurance quotes over the next quarter. This is unsurprising given the catastrophic weather conditions which have been experienced all over the world of late, all of which have a significant impact on the wider insurance market, which in turn has a ripple effect on the domestic market in the form of higher premiums.”
Irish insurance firms have also experienced having to make larger payouts over the past two winters because of the terrible weather.
Homeowners need to review how they have insured their properties as many people will find that they have over-insured on their homes but under-insured on its contents. People can also look at the purchase price of the house they insured, which may have fallen during the recent recession, but must take the steps to reduce the home cover where possible.
McNelis added, “Savings can be made as these costs are now less and have come down significantly from the peak. Insurance companies will not reduce sums insured unless instructed by the homeowner or their broker.”
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