There isn’t a defining factor that shapes your home insurance price each year, insurers consider a whole host factors relating to both you, and the wider world around you, to offer you the best price possible for the right type of cover. Jargon buster: we call these rating factors.
We know insurance can be confusing but to help you understand how we arrive at your price each year, take a look at just a few of the many ‘rating factors’ we use below to see how we calculate your insurance.
We constantly review the way we price our insurance policies to make sure we offer our customers – you – the best price possible.
What affects my home insurance price?
Take a look at all the different ways your price can change – some are related to you and your home while others are external factors you can’t control, such as the weather.
Address and building type
Arguably the main rating factor is where you live – your neighbourhood and your individual address. We look at every postcode and use public data to assess many different things including: how safe the area is and if you’re close to water so at risk of flooding. We also look at the claims in your area – a more claims could lead to a higher premium.
We also look at your building type - whether you live in a flat, terrace, semi-detached or detached house.
This is normally judged by the number of rooms in your house with insurers paying attention to bedrooms. With many people deciding to renovate rather than move, it’s important you let us know if you’re carrying out any major works at your property. Adding an extra bedroom? Converting the attic? Extending the kitchen? Make sure you tell us
The nature and number of claims
Just like car insurance, we look at any claims you’ve made in the past five years. People with fewer or no claims can expect to get a cheaper price for home insurance.
It’s not just your own claims that can affect prices; if the nature or number of claims we settle increases due to an outside influence - such as severe weather – insurers must assess the way claims are priced.
If you have a child or a family member moves in, you need to tell us so we can look at your cover and this may affect your price. Similarly, if someone leaves your home – say your teen flies the nest for uni – let us know and we can look at your price.
Things you can’t control - external factors
It’s not often you think of good weather when talking about the UK and we know all too well how cold and wet our winters can be. The most common cause of weather-related damage is flooding, so Admiral and other insurers must assess the likelihood of homes being flooded. With this on the rise, the UK government and the insurance industry teamed up to help people living in flood risk areas get more affordable insurance – it’s called Flood Re.
Dishonest people who commit insurance fraud can drive up the price of insurance for innocent parties. A 2016 report by the Chartered Institute of Insurers states insurance fraud costs honest policyholders up to £50 a year.
Taxes & government initiatives
Insurance Premium Tax (IPT) is a government-introduced tax on insurance policies including car, home, travel and pet which every insurance provider has to charge. It’s been around since the ‘90s but an increase to 12% in 2017 saw IPT hit the headlines.
Home insurance is subject to the standard rate of 12%.
What can I do if my home insurance price has gone up?
If, at renewal, your home insurance price has risen then please give us a call and we’ll run through your cover to make sure it’s still offering cover for everything you need or see if there’s a better option for you.
We can look at things like:
- Your excess – increasing your excess may help bring your premium down but bear in mind you’ll have to pay this out if you make a claim. Lower excess, higher premium or higher excess, lower premium? You decide, because you're in control.
- MultiCover –you could save money on your Home Insurance by also insuring your cars with Admiral under our unique MultiCover policy. You get a discount on your car insurance too - see our guide to MultiCover.