Location, location, location – Top insurance considerations when moving your home or business

Siyakha Masiye

Choosing to relocate to a new property as your next home, or to move your business to a new premises, is an exciting time, especially if it’s with a view to having fresh experiences, being exposed to new markets and embracing positive change.

While some property seekers may be looking for cheaper options to combat the rising cost of living, proper insurance coverage should remain a consistent factor in the selection process.

“Insurers will assess a property, whether residential or commercial, based on its surroundings, its condition and its safety features, among other factors, so simply moving to a cheaper area with higher crime, won’t ultimately save on money, at least not from an insurance perspective,” says Siyakha Masiye, spokesperson at MiWay Insurance.

“Different areas attract different levels of risk, so it’s a good idea to investigate what your insurer is likely to charge so that you can assess your budget overall, coupled with the costs of moving house or office.”

Any property you purchase needs insurance cover, particularly if you are paying the property off through a bond. The peace of mind that comes with insurance is also priceless in a tough economy, where crime is on the rise and where disasters like fires or floods can happen unexpectedly, resulting in repair- or rebuilding costs. If you are moving to rent, location also factors in covering your contents or All Risk accessories, along with your vehicle.

Moving properties is part of the journey of life, so whether or not it’s an essential next step, Masiye shares some considerations that keep insurance cover top of mind.

Open fields and informal settlements

If the property you are planning to move into is located close to an open field that doesn’t have secured access, this could result in a higher premium as the property is likely to be more accessible for criminals. Properties that border an open field come with an even higher risk factor, due to wall jumpers, and proximity to informal settlements is also considered a heightened risk.

Night life hot spots

If you choose to live near bustling nightlife hotspots or where your car may need to be parked in a street that could be very busy, or become quite empty late at night, your insurance premium may also be higher than you’d like. This is true for commercial parking and properties as well. The more secure a property or vehicle is during the day, but particularly during the night, the better for lower premiums.

Location and then some

While location is a factor, the features of a property will have a role to play in determining the cost of your insurance, in relation to where the property is based.

“If you have a locking garage instead of only off-street parking, your car insurance is likely to cost less. If you have an alarm, particularly one linked to armed response, this will also help with your property insurance premium, alongside security features like burglar bars and locking gates,” he says. But crucially, it’s important to make use of these features. Forgetting to lock the gate, for example, won’t help for insurance purposes.

Contrary to popular belief, residing in a security estate might not necessarily bring your insurance premiums down as much as you’d hope, but generally, living in an estate is considered less risky than living in a freestanding property but it’s still important to observe anti-crime measures. “If you are insured as living or working in an estate, you need to ensure security is prioritised and to not become negligent because you think your property is safer than a free-standing building.”

“Also consider additions like smoke alarms for fire safety, having back-up batteries for garages or alarm systems in place and limiting unnecessary access to your property. In the case of an estate, park in the garage if you have one, even it’s more convenient to park outside, or if you are on a freestanding property, build a higher wall, for example, to make your property as secure as possible.

Above all, the safer the area and the safer the features on a property, the better for your personal safety and insurance premiums in the long run,” Masiye concludes.