Are you living in a home insurance hotspot?

Insurers rate each area according to a list of risk factors. Over an average year, burglaries cost insurers the most but floods and storm damage are also significant in setting local premiums.

A spokesperson for Royal & Sun Alliance remarked that different postcodes can present bad risks for different reasons. For example, a home in the countryside may be at risk of floods whereas another home may be in a crime hotspot.

The 3 most expensive locations for home insurance are West Norwood in south-east London, Bacup in Lancashire and Anfield in Liverpool. Residents in these areas pay up to treble for buildings and contents cover than those living in the less expensive areas such as Stonehaven in Aberdeenshire, Barnstaple in Devon and Meifod in mid Wales.

Parts of south London are viewed as the nation’s most expensive to insure due to above-average subsidence claims, crime and flood risk.

The British Insurance Brokers’ Association advise informing a broker about precisely what you are doing to reduce risks, they can present your home to an insurer in the best possible way.

Furthermore, homeowners can reduce the cost of premiums by shopping around when their renewal is due and comparing their present insurer against the market. Opting for a higher excess (the portion of a claim you pay) will cut overall premiums. Finally, many insurers now reward customers with no-claims discounts of up to 30%.

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