The rating of household policies is based on the assessment of a wide range of risk factors. The most significant of these is the postcode of the risk address, as statistics can be used to predict the likelihood of loss.
Other risk factors include the age and occupation of the insured; age, use and construction of the property; security; previous claims; and insurance history.
Premiums are calculated by applying a rate to the buildings and contents sums insured. The sum assured is normally the value being insured
Alternatively, some insurers offer policies which are rated on the number of bedrooms. Insurance Cover is automatically provided for a specified amount: typically a certain amount for buildings and another amount for contents.
