Location, Location, Location

We all know location is key when it comes to buying a home or investment property. But how does it affect your home insurance premium? And what can you do about it?

It's all about the location

Location is one thing you can't really change about a property. And it's not just about the neighbourhood you live in. Is it on a busy main road? Is there a train track running along your back fence? Is there an enormous TV tower next door? Hve your neighbours been house-trained? All these things will affect the value of your property, and probably also how well you sleep at night.

What's in a postcode?

Your postcode determines your home insurance premium. It's pretty simple - all those statistics on crime rates, fire and flood risk, and local building costs are factored into the assessment system.

Some things can change...

You can do quite a bit to reduce the risk of losing your home or possessions. Number one is security - if there is a high rate of burglary in your area, install an alarm and keep your external doors locked. Tell your insurer if you add extra security measures as this may reduce your home insurance premium. If you are in an area prone to floods or bushfires, you may be able to adapt your home to suit. For example, use floor tiles instead of carpet in a flood prone area and have storage areas in the roof rather than the basement.

...but some things will stay the same

Even if your neighbourhood is 'up-and-coming' - or has already up-and-come - if you're on an easily accessed exposed corner block, you are more at risk of unlawful entry. So be aware of all your location risks.

Insurance is vital

No matter where you live, home and contents insurance is essential. Your home is not only your biggest asset, it is also the place where all your most treasured possessions belong. The things you have spent your whole life working and saving for. So for peace of mind, you need to have enough insurance cover to replace it all if something unexpected happened.