How Your Home’s Location Affects Your Insurance Rates

Your home is integral to the stability, safety and security of you and your family, and adequately insuring it is essential. However, home insurance can add a significant bill to your regular expenses, especially during complicated or unpredictable market conditions. Fortunately, by understanding the various criteria that may impact your rates, such as where you live, you can optimize the cost-effectiveness of your premiums without sacrificing coverage.

Why Does My Home’s Location Impact Prices?

Home insurance carriers must consider many factors when quoting you a rate for appropriate coverage. As companies assess your risk levels and adjust costs accordingly, where you live may be particularly important. Consider how the following aspects of your home’s location may come into play:

• Natural disasters—Many of the nation’s most costly natural disasters have occurred in recent years, increasing homeowners’ rates. If you live in an area at high risk of hurricanes, earthquakes, wildfires or floods, you can expect to pay more for coverage, as insurers must charge more to offset the cost of potential claims.

• Crime rates—Crime is an unfortunate inevitability in today’s world. Losses may still occur even if you’ve purchased a home security system, installed deadbolt locks and otherwise taken steps to secure your home against criminals. Carriers must be particularly aware of these risks if you live in an area that has historically seen higher crime rates, as burglaries, vandalism and arson could all inflict sizable losses for which you might need to file a claim.

• Cost of living—Some areas of the United States simply cost more to live in than others. This generally drives up housing costs, making it more expensive for insurance carriers to pay out claims for covered losses. This means that insurers must typically charge more for coverage in areas with higher costs of living to make up for the potentially greater claim costs.

• Proximity to emergency services—In the event of a criminal act, fire or other emergency, how close you are to professional assistance can be crucial. Losses may often be more limited if a nearby fire station is able to respond to your home and extinguish flames more quickly than if they’d had to travel a great distance to reach you. This is also typically reflected as insurers calculate risk levels and rates.

We’re Here to Help

Contact Bovard Insurance Group today to learn more about getting the best rates for the right home insurance.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.