Whether you’re looking to buy a new home or rent, you have to consider home insurance as part of your expenses. This can be one of those annoyances, but nevertheless home insurance is vital and without it, you could end up paying a lot more.
Don’t cut corners, have a look into home insurance and get a number of different quotes. However you should be aware that where you choose to live, and the property you choose to live in can have a major impact on the value of your home insurance premium.
There is a marked difference between the home insurance premiums paid by people across the UK. Some people pay higher premiums and some people pay lower premiums. Knowing this may help you when choosing the location and type of property. So which people get the cheapest home insurance?
People who look into the location
Location, location, location; a phrase that we are all familiar with, and basically suggests that when it comes to living somewhere, it’s all about the location we choose.
In this regard, there is a bit of a postcode lottery when it comes to home insurance.
You could end up paying more or less just depending on where you actually live – something that is calculated using risk factors. Risk factors look at a number of different variables such as crime figures and the risk of flooding or subsidence.
However this doesn’t mean that if you live in affluent area, with less of a threat of crime, that you will bypass expensive insurance premiums. In fact you may end up paying more, because the property value and its contents will be high.
So people who live in areas of less crime and away from the threat of flooding and subsidence will pay less. In fact research has shown that people who live in low risk areas can save up to £60 off the £164 national average.
People who are security conscious
As mentioned, crime rate is considered as risk factor when calculating an insurance premium. In this respect, having a property that is more secured than most will also shed money off your overall premium. Just like with car insurance, people who park their cars overnight in a garage would pay less than those who park their car on a street because the threat of theft or damage is significantly reduced.
People who have a number of security features on their property will see this calculated into their premium – therefore it is up to you to declare the security features of your home. For example if you have approved locks on your windows and doors this can help. (Please note that the list of approved locks can differ between insurers, so it is therefore recommended to check with your insurer that you have the correct locks first)
Other security features that can help reduce your premium include being part of a neighbourhood watch scheme and fitting an approved security alarm. Again, you should check with your insurer which security alarms they approve before rushing out and getting one.
People who look at the type of home
New builds and properties that are not going to require excessive or constant work, such as pluming, electrics or even structural changes, are going to see a significant reduction in their premiums. The charm of quaint cottages or farm houses maybe one thing, but the insurance premium is another.
However, the type of house you choose is obviously entirely up to you, and if you can afford the home insurance then it shouldn’t matter. However if you are working to a budget then you should seriously consider the type of home to get cheaper home insurance.
