How Your Home’s Age and Location Affect Your Insurance Rates
What if your insurance premium was high due to factors completely out of your control?
You may have noticed that your homeowners insurance premiums have been creeping up over time. Why does this happen? There are many reasons home coverage goes up –and some of that has to do with what’s going on around you.
Does home location affect insurance rates? It absolutely does, which may feel unfair because it and certain other factors, like your home’s age, are completely out of your control.
By understanding how the house’s age and location play a major role in the cost of your rates, you can tweak your existing policy to find one more suitable to your needs. How do these factors influence the cost of your premium, and what can you do to keep costs low?
And what are home insurance rates based on in today’s market? Rates are based on many factors. Keep reading to discover all the answers for which you are looking.
Unlocking the Secrets of Home Insurance Rates
Most homeowners are completely different from one another, but they all share one thing in common: the desire to know why their premiums are so high.
The truth is that many factors influence how much you pay each month. For example, the policy needs to be able to repair or even replace the entire house, so the rebuild value of your property influences the cost of your premium.
Other major factors include your credit history, your history (or lack thereof) of claims, and even your marital status. Policy specifics also play a role because lower deductibles and higher limits lead to a higher premium. Two of the most important factors are ones homeowners often overlook: the age and location of the house in question.
When Time Meets Space: The Interplay of Age and Location
The answers to “Does home location affect policy rates?” and “Does a house’s age impact policy rates?” are the same: yes. However, they affect your rates in very different ways. For example, age is mostly a consideration because older homes may be costlier to fix due to older components inside the house that need replacing to comply with current codes. Carriers pass these costs to the consumer, so if you live in an old home, you can expect your premiums to increase slowly over time simply because the risk of you filing a claim rises over time.
Speaking of claims, location affects homeowners insurance premiums because some people live in riskier areas than others. Houses that are more likely to face wildfire, wind or hail damage may be more expensive to insure, and those who live in areas prone to environmental damage (heavy winds, hurricanes, and so on) will pay higher prices on their premiums.
Additionally, the crime rate of your zip code affects your home insurance rates because the carrier may consider you at greater risk of a break-in or other crime. Conversely, your rates may be lower if you live close to a police or fire department because that means your house is safer and more secure than others.
The Dynamics of a Dwelling’s Age
Does a home’s age affect insurance rates? Yes, but not always in the ways you think. You may end up buying an older house because it is more affordable, but there is a chance it will cost more in the long run due to higher coverage costs. Newer homes may be more expensive to purchase but could end up being cheaper in the long run due to lower coverage costs.
Ready to learn more about the impact of home age on insurance? The guide below covers what you need to know in order to protect your house without breaking the bank.
Aging Gracefully: How Older Homes Influence Premiums
Older homes are full of aging components that are more likely to break down and are more expensive to repair or replace. And they may not be up to current building codes or standards. That means replacing broken items could be more expensive for the carrier because they will effectively have to modernize the house, leading to higher monthly premiums.
Youthful Resilience: The Insurance Perks of Newer Constructions
Newer homes tend to be more expensive than older ones, but they also have newer materials in them that will take a long time to break down. Additionally, a newer home would have already been built with the latest building codes. You cannot always control what affects homeowners insurance rates, but by buying a newer home, you can ensure lower premiums for the foreseeable future.
Location, Location, Location: A Premium Geographical Puzzle
Location is one of the most important home insurance rate factors. Even more than the impact of a house’s age on a policy, where you live can greatly influence how much you pay. Even factors like living in the city versus living in the country or the likelihood of hazards in your neighborhood may have a dramatic effect on your rates, no matter which type of homeowner policy you have.
These are factors that affect homeowners insurance premiums, but what do you need to know to avoid high rates? Below, you will find a breakdown of everything you need to know.
Urban vs. Rural Premiums: Where Do You Stand?
Does home location affect coverage? Absolutely, but sometimes in unexpected ways. For example, living in the city can sometimes increase your rates if the area has plenty of crime or even just plenty of homeowners making claims. Moving out to the country can help, but one of the home insurance rate factors you need to consider is how far you are from any police or fire departments. This could put your home in more danger and is just one more factor that affects your homeowners premiums.
Proximity to Risk: How Nearby Hazards Impact Your Insurance
What affects homeowners rates even more so than the crime rate? The weather, of course. Living in areas prone to certain disasters (like Floridians dealing with hurricanes) is one of the biggest home protection rate factors because natural disasters can threaten the entire house and everyone in it. Depending on the disaster, you may need to get additional riders for protection against floods, earthquakes, and more. Be sure to read up on home insurance riders and what is worth extra coverage before adding anything to your policy.
Navigating Policy Choices With Age and Location in Mind
Short of buying a new place, you cannot control home insurance rate factors like the age and location of the house. How, then, can you keep your premium low even if you live in a risky home? For one thing, be proactive: If your carrier tells you your home is in a risky area, consider investing in home security systems to mitigate the risk and drive prices down.
Often, though, your best bet is to get a new carrier. By shopping around today, you can discover the great rates and top-notch customer service for which you have been looking. And that journey toward a better policy begins with InsureOne.
No Matter the Home, Insurance Has Your Back
Does a house’s location affect coverage? Now you know the answer is “yes,” and that age is also part of how home policy rates are determined. This knowledge can help you save both time and money, but only if you pair it with a carrier that specializes in the best pricing and customer service in the industry.
At InsureOne, we specialize in protecting homes just like yours. Ready to work with someone who has the best coverage regardless of your home’s age and location? If so, come get a quote online. Of course, you can also pick up the phone and give us a quick call at 800-836-2240. Finally, feel free to find an InsureOne office near you.