THE IRISH BROKERS Association has warned that erratic global weather conditions could push up home insurance premiums by up to 15 per cent in the next 12 months.
The IBA issued a statement yesterday urging homeowners to review their home insurance costs to ensure they are getting the best value possible.
The organisation, which represents 700 insurance broker firms in Ireland, said it expects rates to rise by 10 to 15 per cent by the end of 2011.
“Reinsurers have inferred that rates will be rising on home insurance premiums 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,” explained IBA’s director of general services Brian McNelis.
Irish insurance firms have also had higher payouts over the past two winters because of bad weather conditions.
McNelis advised homeowners to review how they have insured their property. He says that a lot of people are over-insured on their house but under-insured on its contents.
Further to this, people can look at the purchase price of the house they insured.
“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,” explained McNelis.