There are many factors that determine your homeowners insurance cost and where you live is definitely one of them. From your state to your neighborhood, where you move could change your insurance rates by quite a bit. Even a few miles can make a difference for your insurance premiums. Read on to learn how your location helps determine your insurance costs.
Proximity to Other Homes
Beyond just the type of home you purchase, how close you are to neighboring properties can change your homeowners insurance cost. A detached home will have different rates compared to a townhouse for several reasons, one of them being proximity. Homes with less space between them are more at risk for damage.
Think about how likely an incident at your neighbor’s house is to damage your home. If you are on a large lot, the burst pipe next door is less likely to flood your basement. In a townhouse, a fire could quickly jump from property to property.
Age of the Area
You probably understand why older homes are more costly to insure. They’re simply more likely to have experienced wear and tear or have outdated systems than a newly built home. The same applies to your neighborhood. An older area can have outdated sewage and drainage putting your home at risk for water damage.
If you are considering an older home or heritage property, you should check that the wiring and plumbing within the home are up to date. You should also ensure that it is properly connected to the municipal electric and sewage systems to prevent serious premium hikes.
Access to Emergency Services
Homeowners insurance cost take into account how easy it is to access emergency services from your property. For example, a rural home that relies on volunteer fire services will be much more costly to insure than a suburban property within a municipal fire district. The longer it takes for emergency services to reach your home, the more damage that can occur before they arrive.
Climate Patterns
Depending on the state you live in, weather patterns and natural disasters could pose more of a threat to your home than the average. If you live in a coastal city and are near sea level, for example, your home is much more likely to experience flood damage. The frequency of other natural disasters like tornadoes or hurricanes also contributes to your homeowners insurance cost.
Crime Rates and Homeowners Insurance Cost
The unfortunate reality is that living in a neighborhood prone to crime is that your home will be more expensive to insure. Insurers review the frequency of past claims based on the neighborhood to help them predict the chance of future claims.
If your insurer identifies your neighborhood as prone to vandalism or theft, you might pay a higher premium. You can take steps to mitigate this by installing home security improvements such as a doorbell camera or a fence with a locked gate.
Traffic
Yes, even the layout of your neighborhood can impact your homeowners insurance cost. A corner lot facing a busy intersection has a much higher chance of damage from a vehicle accident than a home on a quiet dead-end street.
Contact Hosto Financial & Insurance Services For Homeowners Insurance Cost Questions
Understanding these factors for homeowners insurance cost is critical to making any home insurance decision. Once you understand the different coverage levels and policy add-ons, you can begin to determine what your needs and desires are when making your home insurance decision.
If you are seeking advice about getting home insurance, give us a call at (618) 779-5808.
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