TMany things affect home insurance rates, but the location is probably the most important of them. Here are three major ways in which your location will determine your home insurance rate.

The Nature of Disasters Common to the Area

Many forms of natural disasters are geographical in nature, striking some areas more frequently and seriously than others. For example:

  • Some coastal and low-lying regions of the country experience more flooding than other areas
  • Coastal areas are prone to storms
  • Areas that lie on fault lines have high risks of earthquakes
  • Wildfires frequent forested areas

Some natural disasters are typically covered by homeowners insurance while others are usually not covered. For example, damages caused by fire and windstorms are usually not covered by homeowners insurance while floods and earthquakes are usually not covered. It may be necessary to buy endorsements or separate coverage for the disasters that aren't covered. You may also be required to take certain measures to prevent damage depending on the high risks on your area. For example, you may be required to take fire-resistant measures in your construction.

The Cost of Construction in the Area

The cost of construction also tends to be dependent on location. For example, specific roofing slates are common in some areas than others. Having to import roofing materials from other areas is more expensive than using materials common to your area. Then there is also the issue of labor costs, which are also location dependent. Therefore, don't be surprised if areas with high construction costs attract higher insurance rates than areas with relatively lower construction costs.

The Proximity of Emergency Services

Lastly, how far you are from emergency services will also determine your home insurance costs. The distance to emergency services determines how fast you can reach your home and mitigate the damage in case of a disaster. The emergency services that matter the most here are fire hydrants and fire services. For example, if a fire breaks out in your house and it is far from the fire station, you are likely to experience more damage compared to if the fire station had been nearer to your house. More damage equals higher expenditures on the side of the insurance company, and this is what leads to high insurance premiums.

You don't have to resign yourself to high rates just because you live in a high-risk location; there are measures you can take to mitigate the effect. For example, if you live in a flood zone, you need to have a sump pump to take care of any floodwater that may reach the house.

Talk to your local home owners insurance company, such as​, today to determine the rates in your location.