Home buildings premiums continue the upward trend they have shown over the past year with a modest increase of 1.8%, while the cost of contents cover fell by 2.6% over the first quarter of 2010, according to the latest benchmark British Insurance Premium Index.
But the cost of a combined home and contents policy rose by 3.4% - suggesting that some of the 'buy one get the other at a discount' offers are drying up.
The Index is based on the market average premiums from more nearly 80 insurers for a basket of 800 'customers'.
But the Shoparound and the new Comparison site indices present a mixed picture with both premiums falls and rises indicated, suggesting that while some insurers are hardening their rates, there are nevertheless competitive deals to be done.
Simon Douglas, director of AA Insurance, said: "There have been several damaging weather events over the past year - from golf ball-sized hailstones to tornadoes and, over the winter, damage from ice and snow.
"Severe damage from storms or floods means extensive and expensive repairs to buildings while the work must also meet current building regulations on, for example, re-wiring or insulation.
"However, the contents insurance market remains very fluid. Confounding predictions that steadily increasing frequency and cost of claims would lead to premium increases, costs have remained relatively static. A small rise over the previous quarter has been almost cancelled out and the average quoted premium is only 5% higher than when the Index started, back in 1994.”
