The amount you pay for home insurance is calculated by looking at many different factors including your home’s location, construction type and your claims history. But what else can affect the amount you pay for home insurance?

Q & A with John Brady

You could save money by installing a burglar alarm, security measures, fire alarms or a smoke detector.

Q. What factors affect the price of
home insurance?

A. Essentially, the higher the risk of loss or damage to your property, the more you’ll have to pay. Factors influencing the price you pay will depend on the type of insurance
policy you have:

Buildings insurance premiums can be based on:

• Size of property: This is an indication of how much your property would cost to rebuild.
• Construction type: If your home has a wooden structure for example, your premium could be higher than one with a brick construction, which has a lower fire risk. To protect listed properties, flat roofs or thatched roofs, you may need Specialist Home Insurance.

Contents insurance premiums can be based on:

• Value of contents: The higher the value of your contents, the more you’ll need to pay to protect them. Items you take out of the home like mobile phones and jewellery can also be covered.
  
• Valuables: Items such as antiques, fine art, or jewellery, may require a higher premium to protect them.

Building & Contents Insurance premiums can reflect the factors listed above as well as:

• Postcode: Addresses in areas deemed at a higher risk of crime, flooding or subsidence will often pay higher premiums. Affluent areas may also be charged higher premiums, as costs tend to be higher where property and contents values are higher.
  
• Security levels: You could save money by installing a burglar alarm, security measures, fire alarms or a smoke detector.
• Proximity to water: Homes in an area prone to flooding may find they pay a high insurance premium because of the risk of water damage.
• Urban or rural location: Some insurers specialise in urban or rural locations, as each location has different risks and security needs. Check with your provider to find out more.
  

Q. Does my claims history affect the premium I pay?

A. Yes. If you have a history of making numerous claims, you may find this increases your premium. To reward customers who haven’t made any claims on their policy, John Lewis Home Insurance offers a No Claims Discount.

Q. Why have home insurance premiums increased?

Rising inflation rates in the UK have pushed home insurance premiums up by 6% in the last year but increasing numbers of fraudulent home insurance claims are also to blame. Unfortunately, fraudulent claims add around £44 to every home insurance premium, according to the Insurance Fraud Bureau.

Expert tips

Q. Can I save money on my home insurance?

A. Yes, there are a number of steps you can take to reduce your premium:

• Buy buildings and contents insurance together: You’ll only pay one excess if your claim affects both the building and your contents. If you purchase joint building and contents insurance from John Lewis, you’ll also benefit from a 10% discount subject to minimum premiums.
• Improve security: Installing burglar alarms, security lights and other security measures may reduce your premium. John Lewis Risk Management Surveyors are also available to give security guidance
  for your home.
• Insure yourself accurately: Calculate exactly how much cover you need for your contents, so that you’re not paying a higher premium than necessary. With buildings insurance, you only need to insure the cost of rebuilding your property rather than insuring up to the purchase value.
  However, John Lewis Home Insurance offers Unlimited Buildings and Contents Cover so you don’t need to calculate all your contents or worry about being underinsured. You only need to calculate if your valuable items are worth over the policy limit. 
• Increase your voluntary excess: This is the first amount you’re willing to pay for any claim. Remember to check the total excess on cheaper policies, as they may have a mandatory excess built in to keep
  the cost down.

Terms, conditions, limitations, exclusions and acceptance criteria apply. A copy of the policy wording and insurance complaints procedure is available on request.

John Lewis Insurance is a trading name of John Lewis plc.  Registered in England No. 00233462. Registered office 171 Victoria Street London SW1E 5NN. John Lewis plc is an appointed representative of AXA Insurance UK plc who are authorised and regulated by the Financial Services Authority. AXA Insurance UK plc. Registered in England No. 78950. Registered office: 5 Old Broad Street, London, EC2N 1AD