The Inside Edge
According to the latest analysis of MoneySupermarket contents insurance quotes, the UK’s homeowners have enjoyed a decrease in the cost of their policies by an average of 0.4 per cent.
This news comes at the same time as the news that home contents insurance policyholders on the island of Jersey have seen an average decrease in the cost of their premiums of 13 per cent, while residents of South London and East London seem also to be triumphing in the battle against the UK’s home insurance cost hikes, having seen a decrease of around seven per cent. The results show that these policyholders began enjoying these reductions to their home insurance premiums in Summer 2010, and continued to do so until Spring 2011.
Other areas in the top ten areas to have enjoyed the staggering discounts include Norwich Dorchester, Exeter, Leicester, Isle of Man, Walsall and Crewe, all of which have seen reductions in the cost of their home contents insurance premiums by between four and seven per cent.
MoneySupermarket’s Julie Fisher, head of home insurance, said: “Our research shows some areas have seen more of a decrease in the cost of their premiums than others. Unfortunately, postcodes can dramatically affect how much people pay for their home insurance premium.”
She explained the likely reasons for the discounts in Jersey and South and East London: “For example in Jersey, one fifth of the population is retired, and low crime rates coupled with mild weather conditions means that the cost and frequency of claims are likely to be lower than other areas of the country. East London is undergoing significant regeneration and infrastructure improvements and insurers may be adjusting premiums as a result.”
However, it’s a rather different story for residents on the Channel Island of Guernsey. While neighbouring Jersey residents have seen a healthy reduction in the cost of their home contents insurance premiums, Guernsey folk have suffered the highest increase in the cost of their home insurance premiums – a whopping 32.24 per cent. Along similar lines, home insurance premiums for residents of Orkney’s Kirkwall and the Shetland Islands’ Lerwick have been subject to soaring increases of 21.05 per cent and 20.10 per cent increase, respectively.
Julie Fisher continued: “In the case of Guernsey, Orkney and The Shetland Islands, home insurance cover in Summer 2010 was lower than the national average premium price. It is likely that insurers have brought these prices in line with the rest of the country, rather than responding to any specific ‘occurrences’ on these islands, although climate may play a part.
“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.” For more information on building and contents information visit money supermarket.