Norwich Union is to raise domestic property insurance premiums by an average of 10% from next week, the BBC has learned.
Norwich Union is to raise domestic property insurance premiums by an average of 10% from next week, the BBC has learned.
The firm, the UK's largest household insurer, said that the rise was not linked to the recent floods and that the timing was coincidental.
The firm, the UK's largest household insurer, said that the hike was not linked to the recent floods and that the timing was coincidental.
Norwich Union insures about one in five homes in the UK.
Norwich Union insures about one in five homes in the UK.
On Thursday the firm warned that the summer floods could cost it about £340m in payouts to customers.
On Thursday the firm warned that the summer floods could cost it about £340m in payouts to customers.
A spokesman said the firm had been assessing the levels of its premiums for some time.
A spokesman said the firm had been assessing the levels of its premiums for some time.
Repair cost rise
Repair cost rise
Norwich Union's parent company Aviva has told investors that the recent floods in the south of England would cost it £165m.
Norwich Union's parent company Aviva has told investors that the recent floods in the south of England would cost it £165m.
Earlier it estimated that floods in the north of the country would lead to a bill of £175m.
Earlier it estimated that floods in the north of the country would lead to a bill of £175m.
The company said that flood risk was just one element of why they had reassessed premiums.
The company said that flood risk was just one element of why they had reassessed premiums.
More home improvement, increasing numbers of bathrooms in homes, and expensive flooring had raised the cost of repair work, the company said.
More home improvement, increasing numbers of bathrooms in homes, and expensive flooring had raised the cost of repair work, the company said.
But the spokesperson added that those households in flood risk areas would see higher increases than others.
But the spokesperson added that those households in flood risk areas would see higher increases than others.
BBC economics editor Evan Davis said that people should expect to absorb some of the costs of the floods through their insurance premiums and in increased prices for foodstuffs such as bread, milk and some vegetables.
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