Hurricanes, Burglars, and the Price of Home Insurance

Work, retirement, health concerns, the irresistible call of adventure – there are a hundred and one reasons why people choose to move. And moving is certainly not a simple task. There are so many logistical aspects that need to be taken care of, including finding reliable movers, figuring out how you and your belongings are going to make the journey, and of course finding a new place to live. And then there are all the other fine details you need to take care of, like transferring your bank accounts, figuring out how to switch your phone service, and sorting out your insurance coverage. Phone service and some forms of insurance are not that hard to switch over, but home insurance is another matter altogether. There is a great deal of disparity in home insurance rates by ZIP code, and if you look into it, you will find that these differences are caused by a combination of demographic and geographic features.

Climatic Chaos

The news is filled every day with horror stories of the damage and destruction left in the wake of devastating climatic events. This year alone, dozens of firefighters have lost their lives fighting seasonal wildfires in the West. The Eastern seaboard is battered annually by raging storms and hurricanes, while the Tornado Alley of the Midwest is the yearly scene of tragic and inevitable loss. Add to that the earthquake prone cities scattered along the fault lines that crisscross the country and you can see why there is such a staggering difference in insurance rates by ZIP code. After all, when you live in an area where your home is more prone to the ravages of nature, there is nothing much you can do to prevent the utter destruction of your property if the worst were to happen. And since your insurer will have to pay out to repair or even replace your home, it makes sense that they would charge higher premiums in order to cover their risk.

Crime Rates

It is a sad fact that certain cities in our country are more crime ridden than others, and given the harsh economic realities of the recession it is little wonder that home based crimes like burglary are on the rise. Of course, this can lead to a significant variation in homeowners insurance rates by ZIP code. Regardless of where you live, your home insurance policy will cover any loss to your home or property if you were ever to be robbed. Naturally, the risk of this happening in a high crime area is a lot higher, and you can certainly expect to pay higher premiums if you live in such an area. Keep in mind that some ZIP code areas are very large and encompass safer and more dangerous neighborhoods. Make sure to discuss this point with your insurance agent, especially if you are certain that your specific neighborhood is relatively safe.

If you are looking into making a move, it is wise to take the time to check out home insurance rates by ZIP code before you speak with your insurer about switching your policy. That way, you will have a sense of what you should be paying for home insurance in another city. There are a number of online resources you can use to instantly compare home owners insurance rates by ZIP code for free. So check it out before you commit to a policy – you’ll be glad you did!