Rural Areas 'Cheaper For Home Insurance'

We all know that where you live can influence choices in your lifestyle. For example, which schools your children go to or which train line you use. However, it seems that our postcode can also make a difference to our home insurance premiums as well.

A recent survey has found that people living in some areas of the country will pay higher for equivalent home insurance.

Properties in Devon, Shropshire and Pembrokeshire are the cheapest for home insurance, an online comparison site reveals. In contrast, home insurance is more expensive in London, Hull and Grimsby.

The gap between the highest and cheapest home insurance premiums will continue to grow in the future as further increases are attributed to big city areas, the site suggests.

The director of insurance at the company said: "If your property is classified as being in a high-risk area – whether that be for crime, flooding or subsidence, your insurance premiums will be comparatively high.”

"The difference between the cheapest and most expensive areas is a massive 391 per cent, with a three-bedroom homeowner in Bishops Castle, Shropshire, paying just £185 a year."

He added that generally speaking, "big cities, such as London, Liverpool, Manchester, Edinburgh and Leeds" are expensive areas in contrast to the rural areas of the UK.

There are many reasons for these differences in price. Home insurers look at the crime rate in an area, therefore your likelihood of getting robbed or burgled, the average property price, the affluence of an area and whether flooding or subsidence could affect where you live. There are no hard and fast rules though, so an affluent area, which is relatively free from crime, may still suffer from high premiums because of the rebuild value of homes.

If you would like to know more about home insurance why not ask AnswerBank Insurance.