Your local fire department has a direct impact on the cost of your homeowners’ insurance. That’s a fact that is probably known to the fifteen percent of us that research everything thoroughly, and news to the rest. While it makes sense, it’s not something many of us consider when we’re looking for a new home.

A North Carolina television station did a little research on the issue and learned that you could be paying much more than you need to for insurance and the fire department has no real incentive to help lower your rates.

State fire marshals rate fire departments and that ranking is one of the criteria insurance companies consider for homeowners’ insurance. Generally speaking, fire departments in urban areas tend to have better ratings because their facilities are more concentrated – closer together – and there is an abundance of hydrants distributed throughout the town’s network of streets.

What the North Carolina reporter found was that the fire departments in cities and towns like Raleigh, Durham and Chapel Hill typically have good ratings. But in some new neighborhoods outside city limits, fire departments ratings can lead to insurance rates that are nearly 50 percent higher. That can amount to $600 or more.

“Most districts in this state can improve their ratings, especially the ones that have class 9 ratings,” says A.C. Daniels with the Office of the State Fire Marshall. Inspectors base the rating on many things, like water pressure in hydrants, equipment, response time and firefighter training.

“I don’t want people to feel like they’re getting ripped off,” says Tim Lucas with the North Carolina Rate Bureau. “People have to understand there is a risk. The further the fire truck has to get to the fire, the more they’re going to pay in insurance premiums.”

Lucas represents 180 insurance companies that write homeowners policies in the state.