I encourage you to talk with your own insurance agent as I did.  I learned a LOT!  Also, check the links in the references at the bottom and you'll find a lot of confirmation to this data.

Every insurance agent and underwriter is different.  But, for the most part, what I cover here is how it generally works.  This information comes from exact questioning of two different insurance agents with the answers being surprisingly similar. (different companies and underwriters too)

First, the misinformation I've heard time and again.  No, there is no magic distance to a fire station or hydrant that makes any difference in your insurance whatsoever.  Being in a district or not has no impact on insurability.  It's not even considered unless it's a full time fire department (not volunteer).

Now, the facts as I found them.

There is a scale from 1 to 10 that every area falls into.  Some insurance companies take less risk and won't do the upper groups.  A 10 for example, is the area of greatest risk.  This system is being replaced in the near future with something called 'Fire Line' where each and every home and business will be rated individually with the help of satellite terrain data and various computer models showing risk.  A home on the side of a steep hill might not even be insurable but the home near it at the base of that same hill that's on level ground would be.  Each will be evaluated on the risk of that home or building. 

With Fire Line in place each home will have the ability to up their rating based on their actions in and around their homes.  You clear 100 feet from your home you may get a better rating and in some cases make a home insurable at all.

But, for now, it's the 1-10.

So, how does that fit into our area and Bonita Creek?

Bonita Creek is a 9.  Whispering Pines is an 8.  Payson is a 6 as is Pine.  To get any kind of break on insurance rates you must be a 7 or below.  But, get this, we are talking MAYBE a 5% difference.  So, it's obvious that the numbers are more for the risk factor than the actual rate charged.  I'll cover why later on.

So, why is Pine and Payson considered 6's?  Both have full time fire stations with crews ready to respond as soon as a call comes in from 911 dispatch.  That's the key, response time always relates to survivability.

Whispering Pines as well as any community with a volunteer fire department has no set response time and insurance companies don't even consider them as a reduction of risk to any extent.  They are rated one lower than Bonita Creek because they are closer to Payson.

How come one person can get home owners insurance (fire) and someone else can't?  Even if they are neighbors with exactly the same size home, one may find it easy where the other may find it hard.  Here's the reasons for that.

• Some insurance companies won't insure 8, 9, or 10.  That's their choice and often their choice in underwriters.  This is not a problem - simply call around and find an insurance company that can cover a 9.
• Someone's credit is a VERY important factor.  Insurance companies don't exactly pull your credit report.  They get something different from the credit bureaus that give them a simple ranking designed just for insurance companies.  They never see any details on your report. This simple 'letter' tells them if you keep up on your bills, if you are over extended, or if you just pay cash for things - hence, not much in the way of credit at all.  Each has their own known level of risk as a group. 
  • People with good credit tend to be more responsible. 
  • People with poor credit are less responsible, and more likely to 'fib' on a claim to inflate it.
  • People who pay cash are in a quandary.  Many pay cash because that's just how they live.  But, there is a larger section of the population that pays cash because they can't get credit because of past bad history.  It encompasses a less savory group.  So, you have the well to do who pay cash and the slackers who pay cash.  They both end up in the same group - and it's considered the bottom and most risky group.
• The credit grouping is the main reason why one home may have the same coverage and the one next to it, but one has a premium that is 20% higher!

So, bottom line, make sure your credit is as good as you can make it.  If you are on a cash basis you might consider the cost of using credit from time to time as a small price to pay for lower insurance rates.  Even using credit cards and paying them off each month builds a rating.  Spend a dime now, save a dollar later.

The only time you might have an advantage (and remember, it's probably no more than 5% less) is if you live IN a community that has a full time fire department and you have great credit.

References found on the net:

• Insurance Services Office (ISO) - Frequently Asked Questions
• The Wildland/Urban Fire Hazard
• Insurers Turn To Satellite Technology for Help in Managing Wildfire Risks: ISO
• Credit impact on insurance, employment, and even your light bill!
• Insurance Information Institute - Credit Scoring
• Texas House Committee Hears Testimony on Insurance Score Ban - in 2005 Texas was considering making credit scoring for insurance rates illegal.  Not sure the outcome.