There are five main factors that can affect the cost of your home insurance, and it pays to be aware of them.
All homeowners should be covered for both buildings and contents, and any home insurance quote from companies such as Castle Cover should be considered very carefully before making a decision.
The five key factors that affect home insurance costs are:
Postcode
Insurance companies use crime rates to determine the risk, so areas with more burglaries will mean bigger premiums.
The difference can vary hugely, and even a property just a few streets away can be cheaper to insure, so it is worth bearing this in mind and comparing rates when buying a house.
Location
This is not the same as postcode, as location takes into account how susceptible the area is to natural disasters such as flooding, or problems such as subsidence.
Insurers will look at historical data to determine the risk, and may also enquire about structural reports or protection measures that are in place.
Property
The buildings insurance part will take into account how much the property would cost to rebuild should the very worst happen. This will be different from the cost of buying a similar property on the market.
Generally, bigger houses will cost more to insure, but listed buildings also attract higher premiums, as do features such as thatched roves.
Possessions
What you keep in your home determines the cost of contents insurance.
The policy should cover all belongings, at is obvious that the more expensive they were to buy, the more expensive they will be to insure. Very expensive or particularly sentimental items, such as musical instruments or jewellery, should be specified on the policy.
Avoid temptation to over-estimate the value of your possessions, as this will increase the cost of the insurance.
Security
This is the area where homeowners can have the biggest effect on reducing their homeowners insurance costs. More security means lower premiums, so ensure there are good locks on all windows and doors and consider fitting a burglar alarm or fencing.