It seems that the prices of home insurance has shot-up over recent years, with both weather conditons and house prices making an impact.
Home insurance costs more than three times as much in the expensive areas of the UK as it does in the cheapest, for example, and premium costs have doubled and in some cases even tripled in areas vulnerable to winter storms and flooding. Think of the following ways to make a steal on home insurance.
The cost of home insurance varies dramatically in accordance with your area. Obviously, the more upmarket the area, the more expensive the insurance is. A recent survey suggested that postcode is most instrumental to determining insurance premiums for buildings, building contents and mortgages. The cheapest average cost, for example, is Llandrinod Wells, where insurance for contents and buildings is only £200, while in Peckham – in the more affluent South London – the same insurance costs over three times as much, at a staggering £700.
Another variable affecting the cost of home insurance is the increment in changeable weather conditions as a result of global warming. The number of winter storms has doubled over the past 50 years and has, logically, made an impact on the cost of cover.
The warmest periods of the 90s were towards the later-end of the decade; the supposed threats to homes has led to a nerve wracking rise in home insurance. The unprecedented high temperatures in the UK last year, for example, boosted subsistence claims to nearly £400m and the Association of Insurers states that if nothing changes the value of insurance claims could double and even triple in price by the middle of the century.
Given these influences, the first rule when you choose your home insurance is to be scrupulous about getting the amount of cover that you need. Utilise your area thoroughly, and find out the average premium costs that people in your area pay, and don’t get duped into giving more.
At the same time, make sure you are getting the cover you need, especially if your house is likely to be damaged by storms or heat.
Lastly, with differences of up to £150 a year on protection for mortgage specific to the company, make sure you browse. Online comparison tools help you to find a good bargain, allowing access to quotes and coverage details and offers from numerous insurers in a matter of minutes; you can make sure you are getting the best deal and manage it annually. You don’t have to stay loyal to one firm if another boasts a more attractive bargain.
