Local crime can be a big factor in the amount of home insurance you need to protect yourself. Most people only think about things like fire risks and storm threats. Yet, crime plays a role in the frequency of home insurance claims. Because it can occur frequently in some areas, that can raise your costs. Do you know what you need to about crime protection?
How Crime Impacts Your Rates
Consider the amount of crime present in your neighborhood. You may think there are not many concerns at all. Many people, especially those living in suburban-style communities, may not recognize instances of crime. Yet, they can be occurring anyway.
Use a website like Neighborhood Scout to provide you with some guidelines and basic info. This is a free app for informational purposes. You can learn what the property crime rate in your area is.
Compare that rate to other areas near to you. Consider the community’s risks, the metro area’s risks, and even your state’s crime rate. This gives you an idea of why your rates may be higher than others. Many times, property owners have no idea how often claims of theft, vandalism, and other risks occur in their community. Once you know this, you may want to take steps to reduce your risks.
The Insurance Component
Home insurance companies use risks like this to determine how much to charge you for insurance coverage. For example, if you live in an area where there are a large number of break-ins, this means the insurance company is more likely to have to pay for a claim for theft to your home. They might raise your policy costs as a result. If you live in an area without any crime reported in the last two months, that drops your costs.
What Else You Can Do
Crime is not something you can control as a property owner. However, there are steps you can take to reduce your risks.
For example, installing a home security system to monitor your home is a good step. Sometimes, insurance companies provide discounts to those who have these in place. You may also want to consider improving your home’s visibility. Update the locks, too.
Crime is a key concern in many neighborhoods throughout the country. It may seem like something you cannot control for home insurance. Yet, there are steps you can take to make your insurance costs lower.
Also Read: How to Insure Your Second Home