The location of your home may be directly related to why you live there. Maybe it's in a neighbourhood with lots of nearby parks and schools, or it's close to your work or in the city you always wanted to live in, or it's full of tree lined streets and aligns with your budget.
Whatever the reason you have for choosing the location, it also plays a key role in establishing your home insurance rates.
The postal code knows
When you apply for home insurance, insurers are able to pull your postal code to see how many claims they have processed in your neighbourhood. They identify trends and make predictions as to the likelihood of you filing a particular claim. This information is used to calculate a portion of your home insurance premium.
Depending on the data, this may increase or decrease your home insurance rates.
For example, if you live in a neighbourhood that experiences more break-ins on average, your rates may be higher as a result. This is one of the reasons why insurance can be higher in cities where there are more people and higher crime rates. The good news is that taking additional measures such as installing a home security system can help to offset some of these increases.
Related Read: Does home insurance cover burglary?
Flooding has also been a big story lately with worsening weather conditions contributing to severe flooding in Ontario and across the country. Previously, this type of flooding wasn't covered by insurance but now some insurers offer the option of adding overland water protection, which is available through some of our providers.
Specialized optional coverage like overland water protection will likely increase your monthly premium, but could save you thousands of dollars if severe flooding damages your home.
The perks of a good location
The location of your home can also have a positive impact on your home insurance rates.
If you live in close proximity to a fire hydrant or a fire station, for example, you may be eligible for savings. It is believed that the closer you are to fire services, the likelier it is for more of your property to be salvaged in case of a fire.
This can make a big difference if you live in a more rural area, where hydrants and stations are often fewer and far between.
When thinking about where you want to live next, consider how these variables can factor not only into the cost of your home, but also the cost of your home insurance. For inspiration, check out our list of up and coming Ontario neighbourhoods.
If you have any questions about your home insurance coverage, discounts for security systems or optional coverage, please give us a shout at 1-866-523-4111. To get a free home insurance quote, click here.