Which factor may contribute to increased insurance premiums due to geographic risk?

The factor that contributes to increased insurance premiums due to geographic risk is proximity to fire departments. This is because insurance companies assess the risk of property damage in relation to available emergency services. Areas that are closer to fire departments typically have a lower risk of severe damage to properties from fire, as response times are shorter, allowing for quicker action in emergencies. Therefore, the closer a property is to a fire department, the lower the likelihood of extensive fire-related losses, which can lead to lower premiums.

On the other hand, proximity to business districts may imply greater foot traffic and potential for vandalism or accidents, while distance from repair services could indicate higher costs and delays in necessary repairs after a loss. The age of residential buildings can factor into risk assessments, as older structures may be more prone to issues like fire hazards or structural weaknesses. However, these factors do not have the same direct and impactful relation to geographic risk and emergency response capabilities as the proximity to fire departments does.