Rising Insurance Prices Hit Homes in Surrey and Scotland
- Homeowners in Dorking, Surrey pay the Price in the Postcode Lottery With Average Premiums up 46 per cent since January 2010
- Home Insurance Premiums up six per Cent on Average Across the Whole UK Since January 2010
CHESTER, England, April 26, 2011 /PRNewswire/ -- Homeowners in Dorking, Surrey and in Edinburgh and Glasgow have seen the biggest rises in the cost of their home insurance premiums according to the analysis of 3.4 million quotations by Britain's number one comparison site moneysupermarket.com (http://www.moneysupermarket.com/).
The analysis reveals the UK's postcode hotspots most affected by rising home insurance premiums. Residents of Dorking, Surrey, have seen an average 46 per cent increase to the cost of their home insurance premiums over 14 months, with cover rising from an average GBP119 to GBP174, or by 15 pence per day.
Homeowners in the city centre of Edinburgh and in Milngavie, Glasgow, have experienced similar increases (45 and 40 per cent respectively). This is in comparison to the national average which has seen an increase of 6 per cent, or 2.5 pence per day, to the typical cost for buildings and contents cover. Greater London postcodes have been the most affected, representing five of the top twenty hardest hit areas.
The most likely factors causing an increase in home insurance premium prices include, heightened cases of fraudulent claims, the cost of repairs from extreme weather damages and an increase in crime levels.*
Julie Owens, head of home insurance at moneysupermarket.com (http://www.moneysupermarket.com/home-insurance/) said: "The cost of insuring homes in the UK is steadily on the increase. Unfortunately for consumers, things look set to get worse with the increase in prices unlikely to slow down in the coming years. As our research shows, some areas have been harder hit by rising premiums than others; unfortunately, postcodes can dramatically affect how much people pay for their home insurance premium.
"Additionally, if your property is classified as being in a 'high-risk' area - whether for crime, flooding or even fraudulent claims - it will be reflected in your insurance premiums. Living in a more affluent area will also increase premiums as property and contents values will generally be higher. Insurers use postcodes as a part of the overall risk factors when calculating premiums. Although there is very little you can do about the postcode in which you live, except move house, there are steps you can take to reduce your premiums, such as, installing a good home security system and security lighting.
"With this in mind, we urge anyone looking for a home insurance policy to shop around using a comparison website and ensure that they aren't paying over the odds for their cover. The average saving for consumers using moneysupermarket.com to buy their home insurance premium is GBP127."
moneysupermarket.com's home insurance top tips:
- Change the locks - If you've moved to a new home you never know who might still have a key. It is important to maintain locks. Five-lever mortise locks are recommended for external doors while windows should ideally have two bolt locks.
- Install a good home security system - Sometimes there are alarm systems that might be preferred by an insurer. The NACOSS standard alarm can cut premiums with some companies by 7.5 per cent.
- Time-switch lights - Your home is more vulnerable to theft when you are not around. Time-switch lights will give the impression that you are at home.
- If you are away - Remember to cancel newspaper and milk deliveries and ask someone you can trust to open and close the curtains and collect mail.
- Keys - Don't leave them in obvious places such as under a doormat. Also beware of 'hook n crook' thefts - where keys are left so close to a door that a burglar can simply hook them through a letterbox and open the door.
- Install security lighting - illuminate your visitors for their safety as well as your own. Unwelcome visitors are less likely to loiter if they're 'in the spotlight'.
- Join a neighbourhood watch campaign - this can help to reduce your premium if you inform the home insurance company of your participation in a scheme. It can reduce your premiums by up to 5 per cent.
- Avoid frozen and burst pipes - If you think pipes are frozen, turn off water at the valve and header tank to cut down the water that can escape.
- Fire - Fit a smoke alarm and take simple steps to avoid accidents. Most fires in the home are caused by smoking or cooking; never smoke in bed, don't leave cigarettes lying around and don't leave cooking unattended. Other fire tips include closing doors at night to contain fires, check the home is safe before going to bed and keep matches away from children.
- Don't smoke - As covered above, the fire risk greatly increases if you smoke cigarettes. Most insurers will now ask if you are a smoker.
- Think about your cover - Do you really need accidental damage cover? This can increase premiums by 25%. Think carefully about the add-ons you need.
- Don't claim unless you need to - The fewer the claims, the higher your no claims discount. So for minor issues that would be inexpensive for you to cover with your own cash, think twice before making a claim.
Notes to editors:
Top 20 most affected postcodes in the UK for rising home insurance premiums:
Postcode Post Area Price Price % Daily
District Year Year increase increase
2010 2011
RH4 Dorking GBP119 GBP174 46 GBP0.15
EH9 Edinburgh (Inner city, GBP144 GBP208 45 GBP0.18
Marchmont and Grange,
Blackford)
G62 Glasgow (Milngavie) GBP129 GBP181 40 GBP0.14
SO23 Winchester (City Centre, GBP111 GBP151 36 GBP0.11
Abbotts Barton, Bar End,
Highcliffe, Hyde, St Cross
(E), Winnall)
HP2 Hemel Hempstead (Gaddesden GBP115 GBP156 36 GBP0.11
Row, Piccotts End, Grove
Hill, Adeyfield)
EH3 Edinburgh (The New Town GBP127 GBP170 34 GBP0.12
area, The West End and the
Tollcross and
Fountainbridge areas)
CM21 Sawbridgeworth GBP131 GBP175 34 GBP0.12
KT1 Kingston upon Thames, GBP140 GBP186 33 GBP0.13
Hampton Wick
GU52 Fleet (Church Crookham, GBP126 GBP167 33 GBP0.11
Crookham Village)
SW12 London (Balham, Clapham GBP155 GBP205 32 GBP0.14
South)
BT9 Belfast (Malone, Lisburn GBP120 GBP159 32 GBP0.11
Road, Taughmonagh,
Stranmillis)
NW7 London (Mill Hill, Arkley) GBP204 GBP268 32 GBP0.18
FK15 Dunblane (Braco) GBP141 GBP185 31 GBP0.12
N1 London (Canonbury, Kings GBP130 GBP170 31 GBP0.11
Cross, Islington, Hoxton)
HU14 Hull GBP154 GBP199 29 GBP0.12
BT79 Omagh (Drumlea, Glengawna, GBP120 GBP154 29 GBP0.09
Gortin, Mountfield,
Plumbridge, Rosnamuck,
Sheskinshule, Sixmilecross)
SE11 London (Kennington) GBP130 GBP167 28 GBP0.10
SS12 Wickford GBP139 GBP177 27 GBP0.10
SW11 London (Battersea, Clapham GBP152 GBP193 27 GBP0.11
Junction)
DA13 Gravesend (Meophan) GBP156 GBP198 27 GBP0.12
Table based on 3.4milllion home insurance queries from 01/01/10 - 07/03/11.
*
http://www.legalandgeneralgroup.com/media-centre/press-releases/2011/grou p-news-trade-release-fraudstoppers-report.html
http://www.abi.org.uk/Media/Releases/2011/02/Insurers_helped_over_450000_ customers_weather_the_December_2010_freeze.aspx
http://www.abi.org.uk/Media/Releases/2010/11/Massive_rise_in_Britains_flo od_damage_bill_highlights_the_need_for_more_help_for_flood_vulnerable_communi ties_says_the_ABI.aspx
http://www.homeoffice.gov.uk/publications/science-research-statistics/res earch-statistics/crime-research/hosb0611/hosb0611?view=Binary
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