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Feb 13

Your Zip Code: What It Means To An Insurance Agent

Posted By Joseph Manser

PhotoDid you know that your ZIP code (ZC) is typically the first piece of information that is requested when shopping for homeowners insurance?  Why?  This magic 5 digit number reveals a great deal of information. 

Population

For example, your ZC relates to the population size of where you reside.  Insurance premiums will likely be higher in a more densely populated area versus a secluded country home.  Fires and other disasters are more likely to spread in areas with multiple houses in close proximity to each other, thus increasing the risk of insurance claims for entire neighborhoods.

Crime Rate

The higher the crime rate, the greater likelihood you'll pay a higher insurance premium.  Insurance agents look at the probability of filing a theft and other crime-related claims in your ZC.

Weather Risks

Obviously, if you live in a flood zone, you may be required to purchase flood insurance.  Likwise, if your reside in a tornado or hurricane prone area, you may want to purchase additional high wind coverage.