There are a number of variables that can affect the price of your home insurance quote. Some of them are obvious, and entirely understandable; the number of bedrooms you have will clearly affect your premium, as will your proximity to a source of water, and the level of security on your doors and windows. Any previous claims you’ve made will also obviously be taken into account. However, did you know that you could be paying over the odds for your policy purely and simply based on your postcode?
The “postcode lottery” is a term we’re all familiar with; it often applies to the quality of NHS healthcare on offer in your area, which has a knock-on effect on your life expectancy and other health indicators. However, it also applies to home insurance. The latest research applicable to the UK has shown that the winners of this lottery are those living in Jersey, while the losers live a short distance away in Guernsey.
Homeowners in Jersey saw their home insurance premiums drop by an average of 13% between summer 2010 and the recent summer months. Those living in South London and East London were also among the lucky ones, with their premiums reduced by around 7%. In the case of Jersey, it is thought that low crime rates and favourable weather conditions contributed to the reduction, while the percentage of the population in retirement was also thought to be a contributing factor.
Regardless of where you live, there are several tips for keeping your premiums low. Firstly, you should only cover what you need to cover; do you really need accidental damage insurance, for example? Secondly, make sure you don’t make a claim unless you really need to; can you cover the cost yourself? Thirdly, take sensible precautions against burglaries; don’t keep that spare key under your flowerpot!