Home insurance costs can vary by as much as 326%, depending on where you live, reveals research by AA Insurance Services.

The AA took the UK's most popular home, the three-bedroom semi, and switched the postcode to areas around the British Isles.

On average, it costs £327 per year to insure a house and its contents.
Cheapest is Lladrindrod Wells, at just £217 for buildings and contents cover, while at the top of the scale is Peckham Rye in South East London at £709 – a difference of £492.

Overall, London homes are the most expensive to cover, at an average of £465, and Scotland and Northern Ireland were the cheapest regions at £250. The average cost of contents cover across the British Isles is £168.

London again has the highest average premium rates, at £347, followed by Liverpool and Manchester in second and third place, at £332 and £329 respectively.

The Isle of Man gets the lowest average premium at just £98. Kerry Richardson, managing director of AA Insurance Services, said: “The cost of contents insurance is directly related to postcode. In areas of higher crime levels, such as densely-populated cities, cover will always be more expensive.

“Conversely, burglary is clearly not the issue on a small island if the next boat does not leave until three days' time.”

But a smoke detector, good locks on windows and doors, the installation of an insurer-approved burglar alarm and being in a Neighbourhood Watch scheme can all help cut costs by as much as 20%.