To determine what you pay as premium, insurance providers use certain factors to decide how risky it would be to give you coverage. Of the many factors used to calculate a prospect’s rate we are more conversant with stuff like the cost of the home, credit rating and how new the property is. Those are NOT the only ones. There are some that might NOT have to do with the property in question but with the neighborhood where it’s sited. I’ll take you through a number of such things in this article…
1. Do you live in an area that is classified as a high crime rate? If this is true in your case, then you will definitely have a higher risk of burglary among other things. And if it is so, your rate will be higher. So endeavor to live in low crime areas and you’ll enjoy better rates.
2. Does this locality have a neighborhood watch? Such a watch makes the occurrence of things like burglary very rare. You should be entitled to a discount for this albeit it little.
3. Do you live in a “gated” community? If so then it means that concrete steps have been take to ensure better security there. This helps reduce your home’s risk level and so should give you some savings.
4. How far away is the nearest police station from your home? Everyone knows that burglars prefer operating where no one will notice them. And, you’ll agree with me that areas close to police stations are NOT the best spots for burglars. So if your home is sited within such areas, it’s considered a lower risk — That means lower rates all other things being equal.
5. The closeness of your home to a fire station and the type of fire station it is will affect your rate. First, the proximity: If you live close to a fire station then it means that response time to a fire outbreak will be very low. The direct implication is that the risk of fire damage is very low since trained hands will put it off faster.
Now let’s look at the type of fire station in the area: Are the firemen/women here working on a full time or part time basis? A station run by full-time firemen is definitely more effective than those run by part time workers. This also means that they’d respond quicker and more efficiently to distress calls.
These factors, if added up, will have a big effect on your premium. So before making a down payment, consider them and, if possible, pick a neighbor that gives you the advantage.
On a parting note, since your ultimate goal is to enjoy cheaper rates, remember to obtain and compare quotes from a wide range of insurers as this guarantees that you get the best in price/value — Different insurers will offer different rates whatever your profile is.
There are sites that enable you make massive savings both by showing tips and making sure you find the best rates. Here are two: homeowner insurance quotes and online homeowners insurance quotes. Chimezirim has helped many readers realize sizeable savings on insurance.
Tags: home, home insurance, insurance