How Location Affects Your Home Insurance Rates

Here’s why your home’s location influences your insurance rates.How Location Affects Your Home Insurance Rates

When your home insurer determines your premiums, there are many factors that they will take into account. One of the major factors that influence your rates is where your home is located. But why is this so important? Here are some of the ways in which your home’s location affects your insurance rates.

Risk for Extreme Weather and Natural Disasters

If you live in an area that’s prone to certain extreme weather events and natural disasters, then your home is more prone to sustaining damage. This increased risk will translate into higher home insurance rates. So, if you live in an area that experiences serious storms, hurricanes, tornadoes, wildfires, mudslides, or other weather-related issues, you should expect your insurance rates to be on the higher side.

Construction Costs and Building Regulations

Because your home insurance is meant to cover the total replacement cost of your home, your insurer will consider the various expenses associated with completely rebuilding your home when calculating your insurance premiums. For instance, they will take into account things like the size of your home, the cost of building materials, and labor costs. Additionally, your insurer will also consider the costs of rebuilding your home to code. If you live in a state with strict regulations, then this will make it more expensive to rebuild your home. This, in turn, will result in higher home insurance premiums.

Access to Emergency Services

While you might think it’s a pain to live so close to a fire station, your home insurer will see this proximity as a positive. In fact, the closer and more accessible your home is to emergency services, the lower your insurance premiums will be. This is because insurance companies consider homes close to emergency services as safer and less likely to sustain damage.

These are some of the ways in which your home’s location affects your home insurance rates.  Do you have more questions regarding your homeowners insurance?  Then don’t hesitate to contact the professionals at VGW Walker Insurance in Texas.  We are ready to get you the coverage that you need today.