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How the Location of a Home Can Affect Homeowners Insurance Rates

A man in his kitchen wonders how the location of his home impacts his homeowners insurance rates.

Your home insurance rates are made up of a variety of factors, one of which being location. If you’re wondering, “how can the location of a home affect insurance costs?”, consider the unpredictable weather, population, crime rates or proximity to first responders. In this article, we’ll dive further into the three reasons the location of your home can impact your home insurance rates.

3 Reasons the Location of Your Home Can Impact Your Home Insurance Rates

Living in a highly populated city can have an impact on your homeowners insurance costs, but so can living somewhere natural disasters often occur. And while these are just two examples of how location plays a role in your home insurance price, rates can vary from neighborhood to neighborhood and even street to street. Insurance companies calculate risk and adjust accordingly. Here are three reasons geography affects insurance pricing.

  1. Home Insurance Costs Vary by State

    The city and state in which we live can play a direct role in your home insurance rates. For example, someone living by the beach can have different coverage requirements and risks vs. living in the mountains vs. living in the city. Even within the state, however, rates can vary from city to city. Rates can be determined by the likelihood of claims based on similar homes in your area or region.

  2. Likelihood of Severe Weather or Natural Disaster

    Whether it’s flooding, wildfires, tornadoes, earthquakes or hurricanes, the likelihood of a natural disaster taking place near your home will have a direct impact on your home insurance rates. If this is the case, finding the best homeowner insurance for you can seem intimidating and time consuming, but at SelectQuote, we can compare coverage and rates for you in just minutes—even if you think your location will have an impact on your rates.

  3. How Close Your Home is to a Fire Department

    Did you know that your home’s proximity to a fire department and fire hydrant can have a direct affect on your home insurance rates? The department’s ability and timeliness in the case of a fire will be favorable to an insurance company. You can likely expect to pay higher rates if you’re far away from a fire station or live in a rural area primarily serviced by volunteer firefighters.

What other factors affect home insurance rates?

While the location of your home is crucial in determining your home insurance rates, other factors that affect homeowners insurance premiums include:

  • Your credit score
  • Previous home insurance claims
  • Your deductible amount
  • The age and quality of your home

How can I lower my homeowners insurance premium?

One of the easiest ways to save money on home insurance is by bundling. Not only can bundling save you money, but working with one carrier for all of your insurance needs can save you time. Additional opportunities for home insurance discounts can often include home improvements (improving plumbing, replacing your roof, adding additional smoke sensors, etc.), securing your home, how you pay for your policy, if you’re a non-smoker, or if your home was built within the last year.

SelectQuote Can Help You Find Affordable Home Insurance

Finding the right home insurance is easy with SelectQuote. We can compare coverage and rates from some of the most trusted insurance companies in just minutes to find you home insurance quotes. You can ask us questions, share any grievances, and we’ll make sure you find coverage that meets all of your needs.

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