The amount you pay for your home insurance rests on a number of different factors - some you control, and some you can’t. Factors you control include where you live, the type of building you live in, and any previous claims you have made. Meanwhile, things like the weather and changes in the law are out of your hands.
Each of these factors can have an impact on your premium, and all of us are quoted an insurance premium that’s unique to us as individuals. Every insurer assesses these factors differently and this is why you can get a wide range of prices from different companies.
Ideally, you want your premium to be as low as possible for the best possible cover. So with that in mind, here are some things to consider next time you are shopping for home insurance.
Your postcode is one of the factors taken into consideration when calculating your premium. For example, insurers target areas with a high flood risk or crime rate and may increase prices as they see fit.
Other factors include:
- The age and number of occupants - under 16s and more people in your home increases the risk
- The number of bathrooms - the more you have, the more chance of burst pipes, thus the higher the risk
- The presence of security measures - burglar alarms, smoke detectors, and security lights can help reduce the risk
Claim enquiries in the past
If you spill something on your carpet and wonder if you can claim on your home insurance, you might make a quick call to your insurer to find out. However, the fact you made that call could stand against you and increase your premium, regardless of whether you make the claim or not.
This is because that conversation may have been logged on the CUE (Claims Underwriting Exchange) if a particular insurer feels a customer is likely to pursue a claim, even if they say they wont. Once registered, information is rarely removed. However, as a consumer you have the right to ask for the information to be removed, and possibly reduce your premium in the process.
It’s well reported that the weather hitting our shores is becoming more extreme. Prolonged periods of snow or rain can have a detrimental effect on your home – and, as a result, your premium too. Last winter’s flooding, in particular, drove up premiums on houses in high-risk areas.
As the technology we have in our homes gets more advanced and the products more expensive, this can cause premiums to increase. For example, the increasing popularity of tablets, flat-screen TVs, and cutting-edge kitchens means that the contents of our homes are getting more expensive to buy. This means they are also more costly to repair or replace by insurers.
Another reason home insurance premiums increase, is fraudulent activity. Fraudulent claims are on the rise and can add around £50 to the premium for everyone taking out home insurance.
Computerquote Insurance - here to help
We understand that insurance can be complicated and confusing at times. That’s where we come in. We can help you find the right cover for your needs from our panel of UK insurers. Call us on 0800 389 9949 or 023 9224 7870 or get a quote online.