West Norwood home insurance rates are 'unfair' (From Your Local Guardian)

West Norwood home insurance rates are 'unfair'

2:58pm Saturday 27th September 2008 in

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West Norwood’s position as the most expensive place in the country to insure your home is unfair, property experts have said.

The most recent figures compiled by price comparison site moneysupermarket.com gave the average lowest cost of home insurance in SE27 as £342, the highest in the country, and the area is set to be named as one of the highest again when the site publishes its latest figures next month.

Insurers put the sky high quotes down to an above-average risk of burglary, flooding and subsidence.

But local property experts have questioned whether the area deserves the tag insurers have given it.

According to the latest crime figures, West Norwood has an average level of crime for the capital. It was not affected by last summers floods any more than other areas in London.

Subsidence is a problem, but according to Herne Hill chartered surveyor Martin Hemming, the problem is equally serious in other areas of London where insurance premiums are lower.

He said West Norwood was a victim of a postcode system whereby he believed although a limited number of houses suffered from subsidence problems, anyone in SE27 could be flagged up for the problem when setting home insurance rates.

He added: “It is an unfair system. It often means people are having to pay over the odds to insure their property when it is under very little risk at all.”

Estate agent Jeremy Galloway, from Galloways in Norwood Road, said insurers only looked at previous figures, and where they had many claims in the past, they were very reluctant to drop premiums.

Lambeth Conservative leader John Whelan said the level of crime had been exaggerated by companies insuring in the area which was unfair on residents, and should be addressed.

However Moneysupermarket’s insurance expert Peter Gerrard said because of high competition between different companies, insurers would always try and set the lowest rate possible to attract business.

He added: “Areas with high insurance have it for a reason.Insurers are cautious and in areas where there is crime, flooding and subsidence they will give high premiums.

“Where they have paid out a lot of claims before the premiums will be high.”