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How are Home Insurance Premiums Calculated?

Insurance companies differ in the questions that they might ask you, and this can sometimes depend on the particular type of insurance that you are asking for.

Quotation forms are usually quite detailed. You will need to have a good deal of information to hand when you fill out the form. You need to provide details that are full and correct, because you will not have a valid quotation should you have not given correct and true facts.

Your premiums will be calculated based on the answers to certain questions. Answer these questions accurately, or you will find your claims hindered, and maybe your policy annulled. As far as your personal details are concerned, you will likely be asked for your name and date of birth. Then you will be asked for some basic details about your property. They will want to know the type of property (flat, bungalow?), and if it is self-contained or not. They will also want to know when your house was built and how many people live in the property.

They’ll want to know how many bedrooms there are and whether or not your own or rent your property. If you own it, they’ll ask if it is your main residence or your second home. If it’s your second home, you should be asked if there are consecutive periods of time when the property is left unoccupied. They will likely ask whether your property has been the victim of flooding or subsidence in recent years as well.
They will be interested in your occupation, as it can tell them about your ability to pay your premiums. They’ll ask details about your partner, if you have one, and also ask if your property is occupied during daylight hours (which makes it more secure in their view). You should tell them if you operate business activities from home.

The next set of questions will be security related. They will want to know about the lock on the main entrance to the home, and whether they are mortise deadlocks. Do you have a burglar alarm? Are you a member of a neighbourhood watch scheme? Are the windows or skylights accessible?

Finally, they’ll ask whether you have smoke alarms, which can make a large difference to the chances of the house being made uninhabitable (in addition to possibly saving your life).

After all this, you’ll be asked what kind of cover you require, the value of the cover, and your claims history.

Part of Hastings Insurance Centre Limited