Homeowners in Dorking, Surrey and in Edinburgh and Glasgow have seen the biggest rises in the cost of their home insurance premiums according to the analysis of 3.4 million quotations by Britain’s number one comparison site moneysupermarket.com.
The analysis reveals the UK’s postcode hotspots most affected by rising home insurance premiums. Residents of Dorking, Surrey, have seen an average 46 per cent increase to the cost of their home insurance premiums over 14 months, with cover rising from an average £119 to £174, or by 15 pence per day.
Homeowners in the city centre of Edinburgh and in Milngavie, Glasgow, have experienced similar increases (45 and 40 per cent respectively). This is in comparison to the national average which has seen an increase of 6 per cent, or 2.5 pence per day, to the typical cost for buildings and contents cover. Greater London postcodes have been the most affected, representing five of the top twenty hardest hit areas.
The most likely factors causing an increase in home insurance premium prices include, heightened cases of fraudulent claims, the cost of repairs from extreme weather damages and an increase in crime levels.
Julie Owens, head of home insurance at moneysupermarket.com said: “The cost of insuring homes in the UK is steadily on the increase. Unfortunately for consumers, things look set to get worse with the increase in prices unlikely to slow down in the coming years. As our research shows, some areas have been harder hit by rising premiums than others; unfortunately, postcodes can dramatically affect how much people pay for their home insurance premium.
“Additionally, if your property is classified as being in a ‘high-risk’ area – whether for crime, flooding or even fraudulent claims – it will be reflected in your insurance premiums. Living in a more affluent area will also increase premiums as property and contents values will generally be higher. Insurers use postcodes as a part of the overall risk factors when calculating premiums. Although there is very little you can do about the postcode in which you live, except move house, there are steps you can take to reduce your premiums, such as, installing a good home security system and security lighting.
“With this in mind, we urge anyone looking for a home insurance policy to shop around using a comparison website and ensure that they aren’t paying over the odds for their cover. The average saving for consumers using moneysupermarket.com to buy their home insurance premium is £127.”
moneysupermarket.com’s home insurance top tips:
– Change the locks – If you’ve moved to a new home you never know who might still have a key. It is important to maintain locks. Five-lever mortise locks are recommended for external doors while windows should ideally have two bolt locks.
– Install a good home security system – Sometimes there are alarm systems that might be preferred by an insurer. The NACOSS standard alarm can cut premiums with some companies by 7.5 per cent.
– Time-switch lights – Your home is more vulnerable to theft when you are not around. Time-switch lights will give the impression that you are at home.
– If you are away – Remember to cancel newspaper and milk deliveries and ask someone you can trust to open and close the curtains and collect mail.
– Keys – Don’t leave them in obvious places such as under a doormat. Also beware of ‘hook n crook’ thefts – where keys are left so close to a door that a burglar can simply hook them through a letterbox and open the door.
– Install security lighting – illuminate your visitors for their safety as well as your own. Unwelcome visitors are less likely to loiter if they’re ‘in the spotlight’.
– Join a neighbourhood watch campaign – this can help to reduce your premium if you inform the home insurance company of your participation in a scheme. It can reduce your premiums by up to 5 per cent.
– Avoid frozen and burst pipes – If you think pipes are frozen, turn off water at the valve and header tank to cut down the water that can escape.
– Fire – Fit a smoke alarm and take simple steps to avoid accidents. Most fires in the home are caused by smoking or cooking; never smoke in bed, don’t leave cigarettes lying around and don’t leave cooking unattended. Other fire tips include closing doors at night to contain fires, check the home is safe before going to bed and keep matches away from children.
– Don’t smoke – As covered above, the fire risk greatly increases if you smoke cigarettes. Most insurers will now ask if you are a smoker.
– Think about your cover – Do you really need accidental damage cover? This can increase premiums by 25%. Think carefully about the add-ons you need.
– Don’t claim unless you need to – The fewer the claims, the higher your no claims discount. So for minor issues that would be inexpensive for you to cover with your own cash, think twice before making a claim.
Source : Moneysupermarket.com
