Which of the following factors can lead to higher insurance costs for subdivisions?

Development in high-risk flooding areas is a significant factor that can lead to higher insurance costs for subdivisions because properties located in these areas are more susceptible to flood damage. Insurers assess the risk of various hazards when determining policy premiums. If an area has a history or likelihood of flooding, insurance companies will charge higher premiums to account for potential claims that may arise from such natural disasters. This increased cost reflects the underlying risk associated with insuring properties in these vulnerable locations, factoring in the likelihood of damage and the associated costs of repairs and rebuilding after a flood event.

Proximity to urban centers can influence insurance costs, but it does not have the straightforward increase in cost that flooding risks do. Availability of local amenities or the size of individual lots are less likely to have a direct impact on insurance premiums compared to the specific risk factors associated with environmental hazards like flooding. Therefore, while all these factors play a role in shaping insurance costs, high-risk flooding areas stand out as a primary reason for increased insurance expenses in subdivisions.