What is a key factor considered when determining insurance premiums?

The age and location of a property are crucial factors in determining insurance premiums because they directly relate to the risk assessment that insurance companies conduct. Properties in certain locations may be more susceptible to natural disasters like flooding or earthquakes, which increases the risk for insurers.

Similarly, the age of a property can affect its condition, safety, and compliance with current building codes. Older properties might have outdated wiring or plumbing, making them more prone to issues that could lead to claims. Both these factors enable insurers to evaluate the potential risk and cost associated with insuring a particular property, ultimately influencing the premium amount that is charged.