We use risk-based pricing to help calculate our home and landlord insurance premiums. Part of this means we utilise address-based data including the likelihood of a natural hazard event, how the home is constructed and the impact of this on potential claims costs. Premiums can also be impacted by differences in cover such as your sum insured, optional benefits, size of the home and more. This means that two homes next to each other can have different premiums.
In addition, if your neighbour is insured with another insurance company, it’s important to note that each insurer will have their own framework for pricing risk, as well as their own appetite for risk they take on.