How Location Affects Your Home Insurance Premium

Home insurance is an essential and often even mandated investment. These policies can establish and maintain a critical financial shield that may make all the difference in allowing you to repair your home, replace your belongings or otherwise manage financial hardships. However, your policy’s premiums, or regular payments made to maintain coverage, can represent a significant expense. Fortunately, understanding how various factors, such as your location, may impact rates can help.

Key Aspects of Your Home’s Location

Home insurance companies may need to weigh many factors when calculating a quote for appropriate coverage. Your home’s geographic location can play a significant factor in this process, as where you live can significantly impact your perceived risk levels and coverage needs. Consider the following:

• Natural disasters—If your home is in an area at risk of severe weather and other catastrophes, such as hurricanes, wildfires and tornados, you may need to pay more for coverage. Additionally, fewer carriers may be available in these riskier marketplaces, potentially leaving you with fewer options.

• Crime rates—Those living in areas with higher crime rates are often quoted higher rates. If carriers see your home as at greater risk of burglary or vandalism, they’ll need to charge more to insure you.

• Local claims history—In addition to considering claims you may have made against your policies, carriers might also research incidents in your neighborhood, as this can give them a better idea of risk levels in your area. If your neighbors have filed many claims against their home insurance in the past, it could increase your rates.

• Cost of living—If you live in an area with a high cost of living, it typically means that claims will need to pay out more to recoup your losses. Your insurance company will likely quote you a higher price to account for these potentially greater payouts.

We’re Here to Help

Contact D. Ward Insurance Services in Kennesaw, Georgia, today to discuss your coverage options and compare personalized home insurance quotes.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.