Home insurance can be affected by post code
A recent report has highlighted how the cost of home insurance can be affected as the result of where you live, with certain postcodes in the UK commanding higher insurance premiums as a result of increased risks associated with these particular areas. It has been found that residents living in West Norwood in south-east London, Bacup in Lancashire, and Anfield in Liverpool, could find themselves paying far higher home insurance premiums than those living in other areas of the UK.
According to one industry professional there are various factors relating to the consumer’s postcode that could make the area a higher risk.
He stated: ‘Different postcodes can present bad risks for different reasons. One home might be in a crime hotspot, another in a rural area might be near to a river and subject to a flood risk. It is up to the insurer to assess how these factors interact using data such as crime figures and flood maps.’
One insurance customer found himself being charged higher premiums because of his postcode, and had no idea that his postcode was classed as a high risk area.
He stated: ‘I had no idea SE27 was an insurance hotspot. It doesn’t feel like it should be. This is an ordinary house in an ordinary street, but I guess sometimes you suffer from what happens in surrounding areas.’
Your postcode is just one of a number of factors that can affect your home insurance premiums. Other factors include any past claims you have made, the size of your property, the value of your belongings, and even which provider you choose for your home and contents insurance cover.
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