Home Insurance Articles

How Location Affects The Cost Of Home Insurance

2010-08-24

Home insurance is a very important type of insurance to have when you own your own home. It can help replace your dwelling, along with the possessions stored within your house, in the event of a disaster, including fires, tornadoes, hurricanes, earthquakes, and even flooding, in addition to burglaries and other types of crimes. Finding competitive home insurance quotes is not difficult. There are many factors that determine the cost including home value, home location, security features, and more.

Home location is one of the most important factors in determining home insurance quotes. Where your home is located is important because it determines how at risk your home is for crime and for various natural disasters. The higher the risk of these occurrences, generally, the more expensive your home insurance will cost. For example, if your home is located in an area with proven high crime rates, it will become more expensive to insurance, as the odds of a claim occurring are higher. If your neighborhood has seen a recent rash of burglaries, you may see the cost of your home insurance rise. In order to make the cost decrease, you can install certain approved security systems, or even motion-activated lights outside your home. This will help counter-act the affect of your home location.

Homes located near rivers that are prone to flood or homes situated along active fault lines are also subject to higher premiums. In addition to the risk for future disasters, homes located where previous large disasters, such as hurricanes, wildfires, and flooding will find higher premiums, as insurance companies need to recoup the costs of claims in that area. Depending on how your home is built, and certain materials you use, you can make your home more prepared for disasters. Locations prone to hurricanes or tornadoes can use heavy glass, and homes near water can install heavy-duty sump pumps.

When determining how much your home insurance will cost, an insurance agent will issue a home inspection, which will not only determine the value of your house and possessions, but will also take into account the location of your home. Other location-based factors include proximity to factories or manufacturing plants, placement of trees and other dangers to your home. Also included are local natural landmarks such as rivers and lakes.

While you can't move the location your home is in, you can take measures to reduce your risk of crime. You can also take steps to protect your home from natural disasters by using certain building materials. Check with your home insurance company, or companies you are receiving home insurance quotes from, to see what other steps you can take to lower your premium.