House Insurance Rises

Charlie Weston writes today in the Irish Independent today – Original article

Home insurance costs are rising at up to twice the general rate of inflation.

The cost of motor insurance was up again last month, rising by 2.8pc when compared with last year, according to the Central Statistics Office (CSO). It was the fourth month in a row that motor insurance costs went up.

House insurance was up by 9.1pc in the year. This is more than twice the general level of inflation, which was 4.6pc in the year to December.

The cost of health insurance was 10.5pc up on last year, with VHI, Laya and Irish Life Health citing a surge in the number and cost of claims for treatments in private hospitals for the rise in premium rates. Travel insurance was 7.3pc more expensive, the CSO said.

Insurers have blamed a sharp rise in the cost of building materials for the rise in home insurance. This is making repairs and rebuilding costs more expensive when there is damage to houses. Higher vehicle parts costs are being blamed by the motor insurance industry for the rise in vehicle premiums.

The higher cost of motor cover comes despite a sharp drop in the cost of settling claims, after judges agreed almost three years ago to guidelines on award levels that are up to 40pc lower than previously. Higher insurance costs contributed to the Consumer Price Index, the official measure of inflation, rising by 4.6pc between December 2022 and last month. This is up from an annual increase of 3.9pc in the 12 months to last November, according to the CSO.