The cost of homeowners
insurance depends on the type of construction, location of the home, and amount of insurance. A brick structure, for example, is more fire-resistant than a wood framed structure and it sometimes costs more to insure a wood framed structure. Many insurers also charge less to insure a newer home than an older one because newer homes are less likely to sustain damage in storms and fires. The structure's location also affects the cost of
coverage because some communities have better fire protection than others. Some areas may also have greater crime and vandalism problems.
Most insurance companies divide the state into rating territories. Each city and locality in Wisconsin is given a fire protection classification ranging from 1 to 10, depending on the amount of fire protection in the area. These rating classes depend on such factors as water pressure, access to a fire department, and the training and skills of firefighters. Most of the larger cities in Wisconsin are in classes 1-4, the lowest rating classes. Small towns and rural areas have higher fire protection classes and generally higher prices.