Floods and hail push up home policies

Home buildings insurance premiums rose 1.8%, while the cost of contents cover fell by 2.6% over the first quarter of 2010, according to the latest AA 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 AA says. It is the floods and storm damage claims that are scaring insurers. And rightly so. The damage can be staggering