Jersey Wins UK Postcode Lottery for Home Insurance

CHESTER, England, October 4, 2011 -

- Postcodes in Jersey, South London and East London have seen the largest average decrease in home insurance premiums

- Nationally, home insurance premiums have decreased by 0.4 per cent

- Shop around to ensure you’re getting the best deal on your home insurance, says MoneySupermarket.com

Homeowners in Jersey, South London and East London are winning the UK’s postcode lottery for home insurance premiums - having seen the biggest reduction in premium costs, according to data from the MoneySupermarket Monitor on Home Insurance.

The MoneySupermarket Monitor data shows residents in Jersey saw an average thirteen per cent reduction to the cost of their home insurance premiums between Summer 2010 and Spring 2011. Homeowners in South London and in East London have also experienced similar decreases (seven per cent each respectively). This is in comparison to the overall national average for insurance premiums, which has seen an overall decrease of 0.4 per cent in the same period.

Top 10 postcodes which saw the biggest decrease to the cost of home insurance:

    Postal                 Summer                 Change from Summer
    Area      Region/City  2010       Spring 2011 2010 - Spring 2011
    JE        Jersey       GBP148.38  GBP129.71   -12.58%
    SE        London SE    GBP180.07  GBP167.43   -7.02%
    EC        London EC    GBP147.80  GBP137.65   -6.87%
    NR        Norwich      GBP134.12  GBP125.69   -6.29%
    DT        Dorchester   GBP143.71  GBP135.10   -5.99%
    EX        Exeter       GBP137.80  GBP130.48   -5.31%
    LE        Leicester    GBP150.82  GBP142.92   -5.24%
    IM        Isle of Man  GBP147.00  GBP140.00   -4.76%
    WS        Walsall      GBP146.47  GBP140.30   -4.21%
    CW        Crewe        GBP153.30  GBP147.00   -4.11%

Julie Fisher, head of home insurance at MoneySupermarket.com, commented: “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.”

Island Price War

While Jersey residents have benefited from a reduction in premiums, their Channel Island neighbours Guernsey has seen the biggest rise in premiums, there the cost of cover has increased by 32.24 per cent.  Likewise, Kirkwall, in Orkney and Lerwick in the Shetland Islands have seen a 21.05 per cent and 20.10 per cent rise respectively.

Top 10 postcodes which saw the biggest increase to the cost of home insurance:

    Postal                      Summer                 Change from Summer
    Area      Region/City       2010       Spring 2011 2010 - Spring 2011
    GY        Guernsey          GBP119.73  GBP158.33   32.24%
    KW        Kirkwall          GBP125.22  GBP151.58   21.05%
    ZE        Lerwick           GBP131.78  GBP158.27   20.10%
    LD        Llandrindod Wells GBP127.69  GBP144.13   12.87%
    SG        Stevenage         GBP140.29  GBP153.77   9.61%
    AL        St Albans         GBP154.43  GBP168.03   8.81%
    TF        Telford           GBP137.86  GBP147.00   6.63%
    DA        Dartford          GBP161.29  GBP171.48   6.32%
    SS        Southend-on-Sea   GBP171.66  GBP181.42   5.69%
    CA        Carlisle          GBP139.54  GBP147.00   5.35%

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.”

MoneySupermarket.com’s top tips for cheaper home insurance premiums:

• Know the difference between voluntary excess and compulsory excess - Some insurance policies have a compulsory excess which must be paid. A voluntary excess only applies if the policyholder has added it to their policy. Voluntary excess can be used to help reduce the insurance premium. However, people need to be aware that in the event of a claim, the voluntary excess and the compulsory excess together can be expensive.
• 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.
• 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%.
• 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%.
• 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.
• Look out for subsidence - One of the most common problems to affect the home but usually covered in your building insurance policy. Look to see the excess level on subsidence and if your garden walls are covered.
• 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.

Notes to editors:

Julie Fisher is available for additional interviews on request.

The inaugural MoneySupermarket Monitor, a regular publication providing detailed analysis and insight into movements within the home insurance industry, and provides average premium data, as well as information on claims, contents and possessions insured.

Data is based on 2,957,505 home insurance quotes.

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