Homeowners insurance is a very important part of asset protection when you purchase a home, and getting the exact coverage you need for your home can be costly. If you live in a certain location, insurance can cost a bit more than the traditional norms.

If you are searching for a home and hoping to keep your homeowner’s insurance costs at a reasonable rate it is important to pay attention to the exact location of properties that you are interested in to steer clear of any location that may require extra homeowners’ insurance coverage costs.Home Locations that Can Increase Insurance Costs

Here are three traditional locations that will add a significant fee to your monthly homeowners’ insurance and premiums

Flood zones

You may think that it is impossible to live in a flood zone in a typically dry desert climate like in Arizona, but during monsoon season when there are heavy fast rains it actually can be possible for a home to flood in a certain area. Standard homeowners’ insurance almost always excludes damage from floods. If your property is within a flood zone you may be required to purchase extra standalone flood insurance coverage to ensure that your home is taken care of in the event of a flood. This recommendation or requirement can come from the national flood insurance program which is managed by the Federal Emergency Management Agency, also known as FEMA.

Being required to purchase separate flood insurance can add up to hundreds or even thousands more in extra costs on an annual home insurance bill. You do not want to forgo getting this insurance if your home is in a flood area as it could mean you are stuck paying out of pocket for any damages.

Wildfire Area

In many areas across the United States, damage from wildfire is covered in standard home insurance policies. But insurance companies do base their policy prices on the risk of the actual home and its location. If an insurance company believes that a home is more likely to be damaged by a fire, the premium to cover the home will be more expensive.

In some areas of extremely high risk, wildfire coverage could be excluded from the standard insurance policy, and an extra policy to cover any damage from the fire will need to be purchased. Much in the way that flood insurance is required to be purchased as a separate policy.

Some private insurers do offer a specialized wildfire policy package. Homeowners can also look into fair access to insurance requirements plan to find insurance for high-risk properties that a standard insurance policy will not cover. If you need to use a FAIR plan it could be a costly extra premium, however.

Hurricane and Tornado Prone Areas

In places of high wind risk, the home is evaluated to be much more costly to insure and this will be reflected in your homeowners’ insurance policies. Hurricanes most often are the larger factor in high insurance home costs, which is not an issue in this area of Arizona. A hurricane is not just susceptible to high winds, but also to flood damage making it a double risk factor.

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