The average home insurance premium in the last quarter of 2015 has risen due to the increase in insurance premium tax (IPT) according to the Association of British Insurers (ABI).
The organisation said if it had not been for the IPT rise from 6% to 9.5% last November, the cost for a combined building and contents policy would have fallen. It argued anything that pushes up the cost "must be pushed back against".
Based on the ABI's latest figures published today, the average annual premium paid for a combined building and contents policy was £316, or 87p per day. This is an increase of 1% from the previous quarter.
The average cost for a buildings-only policy was £256, or 70p per day. The figure represents a 3.5% rise compared with the previous quarter.
For contents-only insurance, the average annual premium paid was £138, or 38p per day. This is 3.5% up from the previous three months.
Mark Shepherd, the ABI's general insurance manager, said: "Last December's devastating floods reinforced how vital home insurance is. Insurers continue to help thousands of flood victims get their lives back together with an average payout of around £50,000.
"Events like flooding make it even more important that the rate of insurance premium tax should not be increased. For most people their home is their biggest asset, so anything that increases the cost of insuring it must be pushed back against."
The increase in IPT was first announced by chancellor George Osborne during his budget statement in July last year.
