Your home insurance rate is based on various risk factors. You will pay less on insurance, for example, if you live in a low-crime area, whereas you’ll pay more in a high-crime area. Other factors include data reflecting your state, city, and community. Many times it comes down to the socioeconomics of your street.
Here are more details on these factors and ways to lower your insurance rates.
Where you live has a dramatic impact on your insurance rates in several ways. If you live near a fire station or a fire hydrant, you may get a break on insurance rates due to safer conditions with lower risks. Generally, the less chance of crime or natural disaster, the better rate you’ll get.
Regions with severe weather such as hurricanes, tornados, heavy storms, flooding, and mudslides see higher insurance rates due to the greater risk of property damage.
Another key factor that insurance companies study to set rates is the local economy, particularly housing construction and building materials. Brick, for example, costs more than wood, so brick homes command a higher value. State regulations on construction materials also play a role in shaping local economics, as the dollar goes further in southern states.
Deciding where you live has a crucial impact on how much you’ll pay for monthly home insurance. Do you have additional questions about home insurance? Contact the experts at Mike Leonard Insurance Agency. Our dedicated team is eager to find you the right coverage from one of our many carriers, including Kemper, MetLife, Nationwide, Travelers, Safeco Insurance, Progressive, and American Strategic Insurance.