Which of the following best describes a condition that might raise an insurance premium?

A property located in a high-risk area for natural disasters is a key factor that can significantly raise insurance premiums. Insurance companies assess risk when determining premiums, and properties situated in locations prone to natural disasters—such as hurricanes, floods, earthquakes, or tornadoes—are viewed as higher risk. This increased risk leads insurers to charge higher premiums to ensure they can cover the potential claims resulting from such disasters.

In contrast, new construction in a popular area often attracts buyers and tends to retain its value well, which might not directly affect insurance premiums in a negative manner. A well-maintained property is generally less likely to encounter costly claims, making it a lower risk for insurers, while a low crime rate in the neighborhood often contributes to a reduction in premiums, as it indicates a safer living environment with fewer claims related to theft or vandalism. Therefore, understanding the risks associated with natural disasters helps clarify why properties in those areas are subject to increased insurance costs.