Location and Its Relationship to California Homeowners’ Insurance Premiums

You don’t have to be a real estate snob to know the saying, ‘location, location, location.’ Location can affect many aspects of your life – including your homeowners’ insurance premium. Of course, your homes’ features and characteristics are a large part of the premium equation, but even the sturdiest built house is going to have higher premiums if it’s in a high risk area. But what constitutes a high risk area?

One big location variable is the prevalence of extreme weather conditions. If you have a house in California, or somewhere along tornado alley, that location will likely add to the cost of your homeowners’ insurance premium. If you live in Southern California, someplace along the San Andreas Fault, that expected ‘big one’ may not occur without doing a little harm to your home.

Some areas have higher levels of criminal activity and this factor will affect your premiums too. A home in one suburb may be twice as likely to be burgled as one in the nearby suburb. The same factor will affect your auto insurance too. Location is just one of those measurements that will forever be associated with housing, whether with purchasing and selling homes, or buying insurance for them.

 If you’d like a competitive quote on homeowner’s insurance in California, speak to someone at our agency today.