Jersey’s (UK) Home Insurance Bill Goes Down By 13 Percent
Tuesday, November 15, 2011, 2:00 AM | Leave Comment
According to the latest Moneysupermarket home insurance quotes analysis, while British homeowners have enjoyed a recent 0.4 per cent decrease in the cost of their home insurance, homeowners in Jersey, South London and East London seem to be winning the UK’s home insurance postcode lottery. Analysis has shown that these areas have seen a decrease in the cost of their premium of a staggering 13 per cent (Jersey) and seven per cent (South- and East London).
Image by Chris Ward
The latest press release from Moneysupermarket indicates that Jersey policyholders began enjoying their home insurance cost reduction between Summer 2010 and Spring 2011, while South- and East London have experienced a healthy decrease of seven per cent.
Other areas that have triumphed in the battle against home insurance cost hikes include Norwich Dorchester, Exeter, Leicester, Isle of Man, Walsall and Crewe, which have seen reductions spanning between just under seven per cent and just over four per cent.
Moneysupermarket head of home insurance, Julie Fisher, 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.
“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, while Jersey residents have enjoyed a reduction in the cost of their premiums, neighbours on the Channel Island of Guernsey have seen the biggest rise in the cost of their home insurance premiums, having soared by 32.24 per cent. Similarly, home insurance premiums for residents of Kirkwall, Orkney, and Lerwick, Shetland Islands, have been subject to a 21.05 per cent and 20.10 per cent increase, respectively.
Moneysupermarket’s Ms Fisher went on to explain insurers’ reasoning behind the so-called postcode lottery: “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.”
Throw us a like at Facebook.com/doable.financeThis is a guest post by Emma Barnes, Link Analyst for Moneysupermarket.com.
