Location and Type of Home

The biggest factors affecting the cost of your insurance quote will be the location of the home and the type of home covered. Most insurance companies base their rates on the location and type of home.

How Location Affects Insurance Rates
The location is often the most important factor because it usually determines the value of the home. Home insurance rates on a modest home in a working class neighborhood will usually be lower than rates on an expensive home in an upper-class neighborhood.

Insurance rates on homes in locations that are more prone to certain kinds of losses will be higher. The rates on homes in high-crime areas and in areas prone to certain kinds of disasters can be higher. In many cases, rates could be higher in larger cities than in rural areas.

Higher rates may apply to homes in rural or suburban areas that are prone to wildfires. These homes may also have special provisions such as a requirement that a homeowner clear brush around his home to reduce fire danger.

Interestingly enough, the likelihood of some disasters such as floods and earthquakes will not affect house insurance rates. The reason for this is that losses from those catastrophes are not covered by most insurance. Additional special coverage will be needed for those losses and that can increase the cost of house insurance.

Type of House and Insurance Rates
The type of house that you live in can also affect rates and the kind of policy that you obtain.

The owner of a mobile or manufactured home that is sitting on a rented lot will have to get a mobile home policy. A different policy is needed since the homeowner does not own the parcel of land. A mobile or manufactured home that sits on a lot that you own can usually be covered by a normal policy.

The construction of a house can also affect insurance rates. The rates on homes made of fireproof materials such as brick, stone, or concrete are often lower than the rates on wooden homes. The insurance rates on homes with wood or shake shingle roofs may also be higher since those roofs are more likely to burn in a fire.

In many cases, different types of policies will also be required for duplexes and condominiums. A special condominium policy could be required if you own a home that is a unit in a larger building.

You should always determine the location and type of your home before shopping for insurance. That way you can get the most accurate quotes for insurance and make an informed decision.

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