Q: How do home insurance companies decide if an area has a high crime rate?
Apr 02, 2021

My sister and I have similar backgrounds and own similar homes, but my premium is noticeably higher because my neighborhood is considered more dangerous. How do insurance companies evaluate the crime rate of a neighborhood?

Answer provided by
Savannah Grabek
Savannah Grabek is an expert in Personal Lines insurance. She has 5 years experience in the insurance industry. Savannah began her carrier working with just property insurance and is now tenured in all personal line including home, auto, motorcycle, boat and umbrella. She previously worked for GEICO and has now been working with Jerry insurance for the past year. Savannah lives in New York with her son, fiancé, and puppy Bear. In her free time she enjoys spending quality time with her family and hiking with her dog.

Insurance companies keep track of all the claims they pay out. If, in a certain area, they are paying out more for a specific type of crime-related loss, they will consider that area high-risk. When an area is considered high-risk, there are a few ways insurance companies will adjust policies to account for the losses. Typically, they will increase the rates in that area or require the insured to add certain endorsements to their policy for specific coverages.

For example, in New York, you would need to have “off-premises theft” coverage to protect your belongings should a theft occur outside of your home. If someone broke into your car and stole your personal property while you were away from your house, it would not be covered by your policy unless you had that endorsement.

Not quite the question that you were looking for?
Our insurance agents are ready to help you, for free.
Ask your question
Have an insurance question?
avataravataravatar
Our insurance agents are ready to help you, for free.
Ask your question
Our customers say the nicest things
Our members, saved over $5 million in the last 30 days
Find savings (100% Free)
Rated 4.7/5 in the App Store
logos
logos
logos
This app is truly amazing and I recommend it to everyone. They were able to save me over $100/yr on car insurance, and I hardly had to do a thing. They got finalized quotes for me in minutes, and I didn't have to call anyone. They also canceled my old policy, and got me on to my new one for me!
Jerry.ai is the easiest way to compare and buy car insurance
arrow
No long forms
arrow
No spam or unwanted phone calls
arrow
Quotes from top insurance companies
Find savings (100% Free)
4.7/5 Rating on App Store
Have an insurance question?
avataravataravatar
Our insurance agents are ready to help you, for free.
Ask your question
Our customers say the nicest things
Our members, saved over $5 million in the last 30 days
Find savings (100% Free)
Rated 4.7/5 in the App Store
logos
logos
logos
This app is truly amazing and I recommend it to everyone. They were able to save me over $100/yr on car insurance, and I hardly had to do a thing. They got finalized quotes for me in minutes, and I didn't have to call anyone. They also canceled my old policy, and got me on to my new one for me!