There are many factors that affect the price of your home-insurance premiums. Some things you have control over while others you do not. If you want to know why your insurance premiums could be higher than a nearby friend or family member's premiums, here are three reasons why.
You Live in a High-Crime Neighborhood
The neighborhood that your home is located in definitely influences how much you pay for insurance premiums. Insurance companies will take the neighborhood crime rate into consideration, since it can have an effect on burglaries or vandalism, which are things that will play into there being a higher chance of an insurance claim.
If crime rate is a factor, ask your agent how you can counteract it to offset the cost. This may involve putting up a fence around your property to keep trespassers out or installing a security system.
Your Home Is More Prone to Flooding
If you live in an area that is in a flood zone, you will require flood insurance as an add-on to your insurance policy. However, you may not live in a flood zone but rather an area that is known to flood from rain water. If neighbors in your part of the town tend to make a lot of claims for flooding, you may be put into that group and get a higher insurance premium because of that.
Consider having a flood control system installed, as this type of system can deal with basement flooding. By your adding additional protection, your premiums can be reduced.
Your Home Is Far Away from a Fire Station
Insurance companies actually take into consideration how far away you are from a fire station. When you live more than five miles from a fire station, you could be paying 20% more in insurance premiums. Your insurance company thinks that it will take longer for the fire department to respond to an emergency, and more damage will be caused during a fire because of that. The same is said about being close to a fire hydrant.
While you cannot move your home close to a fire station, you can take measures to make your home more fire resistant. Next time you need to replace your roof, consider using a material like metal, which will not easily catch on fire.
There are many more factors that go into making up your insurance premium. If you want a lower rate, work with your insurance agent and see what changes you can make. You can also visit sites like http://www.unitedsecurityagency.com to get quotes.