Home Insurance Articles
How What Goes On In Your Neighborhood Affects Your Home Insurance
2010-04-06
There are a number of factors which can affect the cost of home insurance coverage. Some of the most important are the age and construction of the home, coupled with any pre-existing conditions which affect its structure or security. What many homeowners fail to realize, however, is that their home insurance rates can be greatly affected by the neighborhood that they live in, and what type of activity goes on both during the day and at night. Home insurance companies are diligent about doing research on homes they insure, and have access to multiple of sources of information which will give them some idea of the character and quality of the neighborhood their insured home is in. For clients looking to insure their home, being upfront about any issues present in the area is always a good idea.
The most common type of neighborhood activity that can affect your home insurance premiums is crime. This can include anything from petty thefts and vandalism to more serious problems such as drug dealing, assault, or break and entry. The more crime that is present in your area, the greater the chance that your home insurance provider will have to pay out, and the higher your home insurance rates will be. A home in a neighborhood with a high crime rate will be labeled as "high-risk" to insure, and its premiums will reflect that.
Other factors that can affect the cost of your home insurance include the number and type of businesses in your area. For example, a home located in an area undergoing revitalization with new specialty and coffee shops will be cheaper to insure than one located next to liquor stores and pawn shops, simply based on the type of clientele they attract and the potential for criminal activity. Similarly, a home's distance from emergency services such as fire and police stations, and even the distance to the nearest fire hydrant, can make a difference in determining the risk factor assumed by the insurer.
One other large factor that can affect home insurance rates is the type and magnitude of weather that exists in your neighborhood. If your home is located in an area which is tornado or flood-prone, there is a far greater chance that some portion of your home insurance policy will need to be used. As a result, a home insurance company will insist on far higher premiums, likely in combination with a higher deductible in order to limit their potential loss. While the construction of a home is important in home insurance rates, what goes on around a home can be just as important. Be sure to shop around to find the best quote for your area.