Recent findings have revealed that where you live in the UK can greatly impact on the cost of home insurance and contents insurance from one area to the next, with Guernsey and Jersey experiencing the biggest increase and decrease respectively in the price of home insurance.

MoneySupermarket Monitor, which publishes developments in the home insurance industry, carried out an extensive survey into the issue of the so-called ‘postcode lottery’ that produced some fascinating results.

While residents in places like Jersey, Norwich and Dorchester can toast to saving way above the national average of a decrease of 0.4 per cent in the cost of getting covered between summer 2010 and spring 2011, their counterparts in Guernsey, Kirkwall and Lerwick have been hit with sizeable increases.

There was a 12.58 per cent drop in Jersey and decreases of 7.02%, 6.87%, 6.29% and 5.99% in South London, East London, Norwich and Dorchester respectively. Of the 10 postcodes that enjoyed the biggest decrease, South London came out as the most expensive currently at £167.43.

In comparison, there was a 32.4 per cent in Guernsey and decreases of 21.05%. 20.10%, 12.87% and 9.61% in Kirkwall, Lerwick, Llandrindod Wells and Stevenage respectively. Of the 10 postcodes that endured the largest increase, Southend-on-Sea came out as the most expensive currently at £181.42.

Julie Fisher, the head of home insurance at MoneySupermarket.com, 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.”

Fisher added: “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.”

When it comes to finding cheaper home insurance quotes online to be sure of getting the best deals going.

This guest post is provided by MoneySupermarket.com.

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