Storm damage could increase premiums
Both home owners and motorists should be prepared for an increase in insurance premiums after storms battering the country over the last few days have caused significant damage.
AA Insurance says the extreme weather has led to 200 percent increase in calls to claim lines compared to the same time last year.
Increased claimsMotor insurers reported a big increase in claims, particularly from owners whose cars had been damaged by flying tiles, fallen trees and branches and other debris. Meanwhile the AA Home Emergency Response said it has seen a twelvefold increase in the number of roofing claims it deal with.
The AA is expected to publish data imminently showing that motor insurance costs remained flat over the last quarter of 2011, while home insurance premiums rose by about 3 percent.
Ian Crowder, a spokesman for AA Insurance told the Telegraph: "Major weather events like this, causing widespread damage are not going to help insurance costs come down."
He said although there wouldn't be a sharp increase in premiums, the cost of building insurance in particular was likely to continue to rise this year, as insurers expect "extreme weather" conditions to become more frequent and will want to ensure they have sufficient reserves to meet future claims.