The location of your home is unique and comes with individual risks, which is why your home insurance rates can be impacted by where you live. We’ve shared the answers to the reasons why.
Since the location of your home influences the cost of insurance, if you were to ever move, you should anticipate your insurance rates to change. We suggest contacting your insurance broker to ask about a location before moving. There are multiple factors that go into establishing home insurance cost calculations, and we’ve shared insight below.
Five Indicators That Impact Home Insurance Rates
#1 Fire Protection
The proximity of your home to the nearest fire station is considered to determine your home insurance rates. This is because the further you are, the longer the response time will be in the event of a fire, putting you and your house at a higher risk. The response times also differ depending on if you are located near a municipal fire station or a volunteer station.
#2 Flood Risk
The risk of a flood does not only depend on your proximity to a lake or other body of water but the elevation of your street, your drainage system, and how your home is positioned. These factors are considered to determine rates for home insurance.
#3 Proximity to Other Homes
Insurance companies consider whether you live in a detached, semi-detached, or row home. The distance between your home and neighbouring properties impacts how much you’ll pay for insurance because less space in between means more exposure to risks such as fire.
#4 Crime Rates
Past claims of neighbourhoods are reviewed by insurance companies to help predict the likelihood of future losses. If vandalism and theft are prevalent in your area, you could pay higher premiums. You should always take the necessary steps to protect your home.
#5 Environmental Considerations
If you live in an area that is prone to severe weather such as snowstorms, windstorms, rainstorms, and other natural disasters, your home premium may be higher.
Even though location impacts home insurance, there are many things you can do to help lower the cost from bundling your home and auto insurance to installing an alarm system. Contact your broker today to discuss ways to save!
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