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Insurance costs soar with home cover up 40%

INSURANCE costs have soared by a quarter in the last three years with home cover alone increasing by 40%.

 

Motor insurance costs, although down slightly in the last 12 months are still up 11% in the last three years while health insurance is up by a third. 

Irish Insurance Federation (IIF) chief executive Michael Kemp said premiums are driven by claims. 

"Any kind of movement in claims would affect premiums and that’s what we have seen, especially with house insurance," he said. 

He added that historically, Ireland would have been seen as a cheap location for home insurance as it would not be subject to natural disasters. 

"In the last few years, however, there has been more storms and weather related incidents," he said. 

In the last year alone house insurance costs are up 12% and have soared by 60% in the last 10 years. 

He also said that motor insurance premiums are nudging downwards which is due, in part, to the roads getting safer. In the last year motor insurance costs are down 1% and have fallen 8% in the last 10 years. 

Medical insurance costs, which are up a massive 166% in the last 10 years have soared because of medial inflation, according to the IIF. 

Over the last 10 years insurance costs in general are up 65%. 

Simon Moynihan of bonkers.ie said: "Insurance companies can and do increase premiums without explanation and it is up to you to get them to reduce it." 

According to a recent survey from AA, a third of people have reduced their home insurance costs over the last two years. Lower home rebuilding costs were cited by many as their main motivation for reducing their level of cover. 

This follows the news from the Society of Chartered Surveyors earlier this year that rebuilding costs are down by an average of 9% in Dublin and 7.7% for the rest of the country. 

Louise Ledwidge of getcover.ie said home insurance rates have increased due to the unprecedented amount of claims experienced over the last 12 months,predominantly during the cold snap last winter.

 

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