Does where you live make a difference to Home Insurance charges?

Looking at the demographics of specific areas is a useful tool for organisations and businesses when deciding on everything from marketing products to council budgets.

Where you live, and most specifically your postcode, can say a lot about you as a person and the life you lead; how affluent you are, whether you’re likely to be younger or older, if you enjoy country pursuits or urban culture. It can also have a serious impact on the bills you pay; not least your Home Insurance costs.

Insurers look at the type of claims made in an area, and even by houses and specific streets, when deciding how much of a risk a home and its contents are to insure.

Key factors insurers use when working out premiums

Theft
If you live in an area with a higher crime rate than average, specifically house burglary or street theft, expect to pay higher premiums. Affluent areas generally face a higher degree of policy cost as they tend to be targeted by thieves, but those living in poorer, more socially deprived areas can also suffer.

Flooding
If you live in or near an area considered to be ‘at risk’ of flooding you will have it reflected in your premiums. You can check if you do on most local council or the national environment agency websites.

Subsidence
Homes in an area which has seen a number of subsidence claims ring alarm bells with insurers. Again, expect to pay a higher premium if other houses near your home have suffered.

Japanese knotweed
The impact of the virulent Japanese Knotweed can be highly damaging to buildings is seen as a growing threat by insurers. If other properties around yours have claimed for it, it could increase your home cover costs.

Living by a main road
Living by a busy main road where traffic moves quickly could increase your premiums as the risk of damage from moving vehicles increases.

Fire risk
If you live in the close vicinity of premises which are seen as a greater fire risk, such as restaurants or buildings with industrial usage, you might also face increased premiums.

Why it pays to be honest with your insurer

While an insurer is able to access a wealth of information just from your postcode, they also still rely on the honesty of those applying for insurance. And it could have serious financial ramifications if you don’t tell the truth.
For example, if you know your house has suffered flooding in the recent past, even if you didn’t own it at the time, you must indicate this to an insurer when you apply for cover. Not doing so could invalidate any future insurance claim.

Likewise, don’t pretend that you have a seriously high standard of locks if you don’t so as to keep premiums down. If you’re broken into, the agent your insurer sends to assess the break in and your claim will note that your locks aren’t as stated and it’s likely you’ll get nothing.

 

Policy Expert

Policy Expert is an online Home Insurance broker, dedicated to helping customers find the insurance policy that’s right for them. Our customers are at the heart of everything we do, so we have a team of experts with a real passion for making sure people get the cover that’s right for them. Policy Expert is driven by a desire to help you find not only the best value insurance, but the right insurance for your individual needs. To speak to one of our experts, call 0203 014 9300 or email ask@policyexpert.co.uk.

4.3 Av. rating 4.3/5 (3,312 customer reviews)

We ask every new customer to tell us what they think of our service. Collected by an independent third party – Trust Pilot.

2 2/5 avoid if you can
I have tried to contact Policy Expert regarding Home Emergency Insurance cover been on the phone for a while then decided to use their calling back system been waiting for hours still waiting,also failed to respond to my law firm regarding legal expenses cover for car accident.
...more

1 1/5 Shocking avoid at all costs.
We returned home from holiday and on opening the front door there was a strong smell of damp. I discovered the landing carpet was soaked and on the other side of the wall was tour bathroom. When walking into the bathroom water started splashing up from the grout between the tiles I turned the water off at the stop cock until a plumber friend was able to take a look. It was the shower that was leaking so the water to the shower was isolated which stopped the leak. We contacted the policy expert who sent someone out a week later by this point the floor had dried out but there was still evidence of the shower leaking as there were water marks on the titles and down the shower wall. We were told we had no claim as the leak was due to the sealant in the shower needing replaced. The sealant was fine when we went on holiday and there was no leak from the shower when we went on holiday. They practically accused us of lying. The surveyor did nothing more than take photos but because we had no receipt from my friend who isolated the water to the shower for me FREE they say we have no claim. I've looked at this company's list of directors and trading history and it makes interesting reading. Avoid at all costs they will take your money and if you are unfortunate enough to have to make a claim they will find an excuse not to pay you. The customer services staff on the phone are rude.
...more

The views expressed here are solely those of the author and do not necessarily reflect the views of Policy Expert.