How Your Home’s Location Affects Your Insurance Rates

How Your Home’s Location Affects Your Insurance Rates

Here’s how your home’s location can affect your insurance premiums.

When insurance companies calculate your premiums, they take many factors into account. One of the things they will consider is your home’s location. But how much can your home’s location actually affect your insurance rates? Read on to find out why location matters for your insurance costs.

Weather and Natural Disaster Risk

Depending on the weather patterns of where you live, your home might be more at risk for damage or complete destruction than similar homes in different locations. This increased risk for damage will translate into higher insurance costs. Generally, your insurer will look at the weather conditions and the prevalence of different natural disasters (such as earthquakes, hurricanes, tornadoes, flooding, etc.) in your area and use this to calculate your home’s risk.

Construction Costs and State Regulations

Because homeowners insurance is written to address total replacement cost, the projected cost of rebuilding your home will also affect your insurance rates. For instance, insurers will take into account the costs of construction materials, labor expenses, state building regulations, and so on when determining the replacement value of your home. The higher this value, the more expensive you can expect your premiums to be.

Proximity to Protection

Finally, your insurer will evaluate how accessible your home is to emergency services. For instance, of your home is situated near a fire station, then this will be considered a positive when it comes to your homeowners insurance. The closer you are to protection, the better your insurance rates will likely be.

These are some of the ways in which your home’s location can affect your insurance rates. Looking to find the right coverage for your home? Then contact the experts at Desert Empire Insurance  We are ready to get you the coverage that you need today.