HomeThe homeowners insurance quotes you receive are based off a set number of factors. Your credit score and how much risk you represent are two of the broader categories that insurance companies look at when formulating your quote. Looking more closely at risk, you should know that certain aspects of the neighborhood which your home sits could positively or negatively affect your homeowners insurance.
Here are the top five factors of your neighborhood that affect your homeowners insurance:
I. Population density ' Statistics show that denser populations mean higher crime rates and a greater susceptibility for home damage. Urban areas where there are a lot of houses in close proximity means that burglary and vandalism is more likely as well as the chances of damage caused by house fire since the fire can spread between buildings if they are close enough together.
II. Crime rate ' If your neighborhood statistically has a high crime rate then the insurance company will view that as a red flag and label you high risk thus offering you higher homeowners insurance.
III. Historic neighborhoods ' Historic neighborhoods are a double edged sword. The homes are much older and are often examples of classic architecture. These neighborhoods are generally safer but the specific homes are risky because of old wiring and heating/plumbing systems.
IV. Urban or rural? ' As mentioned above, population density is closely related to urban areas and high crime rates which can lead to high homeowners insurance. However, rural areas are typically associated with lower homeowners insurance.
V. Neighbors ' The average building costs of other homes in your neighborhood as well as the demographic your neighbors generally represent play a role in your homeowners insurance.
An Informed Home Owner Saves On Homeowners Insurance
Although you can't control all the factors that go into determining your homeowners insurance you can get educated and that is always important in purchasing any kind of insurance. Talk to a homeowners insurance agent today about other ways you can save on your homeowners insurance.
staff contribution: Kyle Fitzsimmons
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