How Location Affects Your Home Insurance Rates

This is how your home’s location influences your insurance premiums.

Your home insurer takes many different factors into account when determining your insurance premiums. One of the major factors is your home’s location. Curious to learn how location affects your insurance rates? Read on for more information.

Risk of Extreme Weather Events and Natural Disasters

If your home is located in an area that is prone to extreme weather events or natural disasters, then it has a higher risk of sustaining damage or being destroyed. This increased risk will translate into higher home insurance costs. So, if you live in an area prone to extreme storms, hurricanes, tornadoes, earthquakes, floods, wildfire, mudslides, etc., then you should expect to have higher insurance rates.

Construction Costs and State Regulations

Because your homeowners insurance is meant to cover the total replacement cost of your home, your insurer considers the various expenses associated with completely rebuilding your home when calculating your premiums. For instance, they will consider the size of your home, the cost of construction materials, labor costs, and the expense of bringing your home up to code. If you live in a heavily regulated area, these requirements will lead to higher construction costs. This, in turn, will mean higher insurance rates for you.

Access to Emergency Services

While living in close proximity to a fire station might seem like a pain, your home insurer will see this as a positive. Because your home is easily accessible to emergency services, your insurer considers your home to be at lower risk for serious damage. So, if you live in close proximity to a fire station or even a fire hydrant, your insurance rates might be on the lower side.

These are some of the ways in which your home’s location affects your insurance rates.  Do you have more questions regarding your homeowners insurance?  Then contact the experts at Pierce Insurance Group.  Our dedicated team is ready to get you the coverage that you need today.