The True Cost of Living in your State

Moving is considered to be one of the top five traumatic events in the average person’s life, and this is especially true if you are moving to a whole new state. To begin with, there is the stress of selling your home, packing your belongings, and hoping that they arrive at their destination in one piece. Then there is the inevitable odd discomfort that comes with settling into a new place, even if it is a city you absolutely love. And there are also the more prosaic changes you have to get used to, such as a different cost of living. Everything is priced differently depending on where you live in the country, and home owners insurance is no exception. If you look up home owners insurance rates by ZIP code, you might be surprised to find how much of a variation there is both across and within states.

There are a number of factors that lead to this disparity in home insurance rates by ZIP code, and your insurer can help you to understand exactly which ones affect your premiums.

Home Value

This, of course, is a bit of a no-brainer, but it is worth mentioning because it is the most important aspect that underwriters take into account when determining your premium. Any reasonably sized city will incorporate multiple ZIP codes corresponding to certain broadly defined neighborhoods. Those areas that have higher average home values will routinely see higher premiums. If you look up home insurance rates by ZIP code in your city, you will get a good idea of how much home owners insurance premiums are in a given neighborhood, and this could help you to narrow down your home search.



No state is uniformly the same when it comes to crime rates and living conditions. Every state has its poorer and richer cities and towns, so there is bound to be a lot of difference in home insurance rates by ZIP code. Insurers run a higher risk when they offer coverage to home owners who live in high crime areas. After all, there is a much stronger possibility that such a home will be vandalized or burglarized. In order to cover themselves against future losses, insurance companies dealing with such homes will routinely charge higher insurance rates.


An Act of God

In terms of home owners insurance, an act of God is any natural disaster that results in damage to your property. For instance, a lot of the Midwestern states are known to be tornado prone while states on the eastern seaboard are particularly vulnerable to devastating storms and hurricanes. On the other side of the country, in states like California and Washington, earthquakes are an ever-present danger and no summer passes without a vicious fire season. Given all of these intense and differing climatic conditions, it is not surprising that there is such a discrepancy in home owners insurance rates by ZIP code. Your insurer can help you determine what sort of protection you need in your area, but you can be sure that it will vary widely depending on what types of climate events your area is susceptible to.

There are a number of more specific factors that might affect your insurance rates depending on where you live. Always take the time to discuss your coverage needs and options with your insurance agent so that you can be sure you thoroughly understand the extent of the coverage you have.

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