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

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

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.

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.

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

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