If you’re considering moving into estate with the idea that you’ll pay lower household insurance premiums, think again. The levies you pay may only cover building insurance that relates to communal areas of the estate, and you will still have to fit the bill for contents insurance based on your individual risk profile.

A number of us assume that moving into a security estate will lower our risk and automatically lower our insurance premiums, but according to Adrian Goslett, Regional Director and CEO of RE/MAX Southern Africa, “It is always best to enquire with your insurance provider to find out how the move to your chosen security estate will affect your household and car insurance premiums. These premiums are calculated based on your risk profile, so your insurance provider will need to consider your chosen security estate safe enough that it lowers your risk profile and subsequently decreases your monthly instalments”.

Owners of property in estates are urged to still consider security amenities in the form of burglar bars, alarms and electric fencing. Just because your estate is access controlled, doesn’t mean people won’t be able to get into the estate and your property at all, and your insurance company will consider whether you have these features or not when giving you a quote. As premiums are calculated on an owner’s unique risk profile, living in an estate will be factored in, but not automatically grant you cheaper insurance.

 So if you’re banking on lower insurance rates when you move into your new estate property, remember to factor in traditional home safety methods before banking on a cost cut purely due to the move. For more security ideas, read Private Property’s home security article.