It might seem unfair, but such factors as the street you live on, your home’s proximity to rivers and trees, and how many claims you’ve previously made can all affect the cost of your home insurance.
But can you really blame an insurer? If you live in an area with a higher than average burglary rate, for example, it’s inevitable that they’re going to take this into account when working out your premiums.
The basic rule is that the greater the risk of loss or damage involving your property and possessions, and also their estimated value, the higher your premiums are likely to be.
Here are the main factors which affect the cost of cover:
Where you live is a crucial factor. Some streets and areas are prone to flooding, or are affected by some seriously big tree roots which can cause subsidence. Others might have high crime rates, in particular for burglary and street theft.
Affluence is also a factor; the posher the postcode, the more likely this will affect your premiums.
Value of your contents
It goes without saying that the more valuable the items you own, and want covered, the more you will have to pay.
If your property is built mainly of wood, or you have a thatched or flat roof, or it’s a listed building, your premiums will in all likelihood be affected and you may even need specialist home cover.
Having a burglar alarm, high quality locks fitted to doors and windows, double glazing, fire alarms and smoke detectors can all affect the premiums you pay.
Proximity to water
If your home is in, or close to, an area that is deemed to be prone to flooding, you will nearly always be expected to pay a higher premium than if it wasn’t.
City, town or countryside?
Urban areas are usually considered to be a higher risk for burglaries, general crime and fire. However, if you live in the countryside you might find flooding, or subsidence, is more of an issue.
Size of property
The rebuild costs of a larger property will probably be more than for a smaller one, and the cost of the buildings element will go up accordingly.
Lifestyle factors also enter into the equation, such as your age, if you are away from home for prolonged periods, whether you’re a smoker, married with kids or single.
Most insurers will be suspicious, rightly or wrongly, of people applying who have made numerous previous claims. If you haven’t made any recent claims, you’ll often be rewarded with a ‘no claims discount’.
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