Home insurance claims on the rise

23rd March, 2012

Although many people put off taking out home insurance, it could be the last thing home owners should scrimp on as we accumulate more and more expensive items. The cost of an insurance policy can always just amount to an expensive piece of paper, but recent analysis by The Co-operative Insurance has shown that the average cost of a home theft claim has increased quite rapidly over the last two years.

In 2010 the cost of theft claims increased by 8%, followed by a 9% rise in 2011, after three years of the cost remaining flat. In fact, the average burglary claim costs £225 more than the average of two years ago. This is alongside the fact that the number of burglaries reported has remained unchanged over the last five years.

Head of Home Insurance at The Co-operative Lee Mooney attributed the recent rise in claims costs to burglars deliberately stealing higher value items compared to a few years ago. He also said that expensive goods were heavier and more cumbersome in the past, whereas now many gadgets are light, easily portable and expensive. Home Office statistics produced for 2011 showed a 14% rise in the number of domestic burglaries.

 

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