There are essentially ten factors that affect your insurance premium, some of which you can control and some of which you cannot. The fifth of the ten factors is something that you have no control over, after you buy the house that is, and that is whether you are in a high risk area.
If you own a home in Florida, you likely are seeing huge premium increases last year and this year because of the recent rash of destructive hurricanes. If you live in California, you’ll likely see higher than average premiums because of the higher risk of earthquakes. Often times these large geographic regions and the risks involved will not play a factor in where you choose to buy a home because you will likely be buying a home near your place of work, but it’s important to remember how these decisions affect your premiums.
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