Moving And Insurance – How Does Location Impact Your Insurance?
When it comes to real estate, we’ve all heard the expression “location, location, location!” But did you know location is also the main factor in the cost of your insurance premiums? In this article, we outline some of the reasons your insurance costs might change after you move.
Home Insurance
Moving is an emotional time for many. Families fall in love with a home where their kids can grow up, or a young adult moving to a trendy city condo close to all their downtown spots. But most of us overlook the fact that even moving from one subdivision to the next in the same area can result in a change in your monthly premiums. The main factors your insurance broker will assess after relocating are:
1. The age of your home
As your home ages, the infrastructure wears down and poses a higher risk of damage. Older homes are more susceptible to fires, and problems with HVAC, the roof, foundation, plumbing, and electrical wiring. Insurance companies may raise the premiums to prepare for the cost of any of these potential claims.
Even if you live in a newer home, the age of your neighbourhood is also reviewed by your broker. Mature neighbourhoods often have older sewer systems, which could potentially put you at an increased risk for a sewer backup. It is possible that houses in older neighbourhoods may also have out-of-date wiring and plumbing systems, which could increase your chances of an electrical fire or plumbing issues. Therefore, moving to an older neighbourhood could lead to a potential adjustment in your home insurance cost.
2. Proximity of fire services:
The first burning question from your insurance broker is how close your new house is to a fire station. The proximity of a fire hall and fire hydrant, as well as the type of fire services available in your district (volunteer vs. full-time firefighters), can all impact your rate. Secluded homes that are far away from a fire department would result in a longer response time and therefore increase the likelihood of serious damage to your property. Insurance companies also consider the response time of a volunteer force in comparison to a paid fire task force.
3. Likelihood of experiencing a flood:
If you live close to or on a body of water, there is a greater chance of experiencing flooding. Beyond the proximity, factors such as the elevation of your street, the drainage system and even the position of your home call also impact your rate. It may also affect your eligibility for certain coverages such as overland water and sewer backup coverage.
Home is where the heart is, or rather where the heart is located! If you have moved recently, talk to your Merit broker to see if any of the aforementioned factors impact you.
Auto Insurance
It is common to assume a new home will cause a change in your home insurance rates. But did you know that relocating impacts your car insurance as well? Here are the top 3 factors driving a change in your auto premiums.
1. Traffic volume: If you live in a highly populated urban area, there will likely be a greater number of intersections. As a result, there are more cars on the road and an increased risk of collision.
2. Commute to the office: If you are driving a long distance to get to work, spending more time on the road means there is an increased opportunity for a car accident.
3. Crime Rates: Moving to an area with a higher frequency of car theft claims can result in increased premiums. For tips on how to protect your vehicle, view our blog: Gone In 60 Seconds: The Rise In Auto Thefts And How To Protect Your Vehicle
Moving can be an exciting but busy time! Stay covered while you move by discussing your home and auto insurance needs with your Merit broker.
