How Fire Stations Can Affect Your Home Insurance Premiums
How Fire Stations Can Affect Your Home Insurance Premiums
Home insurance premiums seem elusive until you discover what, exactly, makes them raise or lower year by year. There are many factors which an insurer may use to calculate your home insurance premiums. One of these is your location and, specifically, how close you are to a fire station.
Why?
Home insurance prices, and insurance prices in general, are calculated based on the amount of risk the insurance provider is at for paying out a claim. If you are more likely to file a claim that the insurer will have to pay, you may be charged more for insurance to compensate.
This means that having certain safety measures within the home, such as fire alarms and a burglary alarm system, can change your home insurance premiums, as these measures lower the risk of you or your family filing a claim.
How?
Living near a fire station can lower your home insurance rates drastically. A nearby fire station means that any home fires are likely to be put out quickly, and the damage they cause minimal. On the other hand, homes that live far away from fire stations or even fire hydrants can have trouble finding cheap home insurance. The further away you are from a fire station, the longer you would have to wait for emergency services. And the longer a fire burns, the more damage it can cost—which means the insurer will have to pay more in compensation for a claim.
Where?
Urban areas and suburbs are more populated with fire hydrants and fire stations than rural areas. If you live in a rural town that is miles from the nearest fire station, you could have trouble purchasing cheap home insurance.
How Much Can a Fire Station Affect Your Home Insurance?
A nearby fire station saves an average of about 4% for homeowners on home insurance. While this isn’t a lot, it can save you a substantial amount in the long run, especially paired with other discounts.
Carefully consider your location when searching for a home. You will want to be near a fire station or a fire hydrant, both for better home insurance prices and for a better sense of safety. Also invest in other safety measures that can save you money on home insurance, such as an indoor fire extinguisher, upgraded locks and doors, anti-burglary systems, etc.
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