Average prices for buildings, contents and combined insurance climbed by 11% over the past 12 months.
The survey found over the last three months of the year that:
- Buildings insurance went up 3.1% to £156.95 from £152.18, an annual increase of 9.5% from £143.36
- The price of contents cover increased 4.4% to £80.58 from £77.21, an annual increase of 11.2% from £72.43
- Combined buildings and contents insurance rose 2.9% from £211.49, an annual increase of 5.6% from £200.25
The figures are based on taking the average price of three quotes for each product.
Simon Douglas, director of AA Insurance, said : “Storm damage, flooding and burst pipes are top of list of worries for insurers, following two harsh winters and increasingly frequent severe weather.
“In addition, economic pressures result in more theft claims. According to the British Crime Survey, domestic burglary in England and Wales grew by 10% over the 12 months to the end of June 2011.
“The premium increases we have seen over 2011 reflect both past losses and concern about future claims.”
The AA predicts the cost of home insurance will continue to rise through 2012, at about the same rate as the past 12 months.
“I expect that by this time next year, home premiums will have risen by somewhere between 5% and 10% because historically, prices are static,” he said.
“For example, between 1994 when the AA started tracking home premiums and January 2009, the average quoted premium for a contents policy had risen by less than 1% while buildings had risen by less than 8%: that compares with more than 100% increase for a car policy over the same period.
“Home insurance still represents good value.”