In "The Monkey's Paw" where does the setting create suspense?

The setting creates suspense because the weather is stormy and the house is isolated.

Suspense is the feeling that something is about to happen.  Usually it means that something exciting or something bad is happening.  The author creates suspense by setting the story on a stormy night.  He also incorporates a chess game, which is a metaphor for suspense, because chess is a suspenseful game.

Without, the night was cold and wet, but in the...

The setting creates suspense because the weather is stormy and the house is isolated.

Suspense is the feeling that something is about to happen.  Usually it means that something exciting or something bad is happening.  The author creates suspense by setting the story on a stormy night.  He also incorporates a chess game, which is a metaphor for suspense, because chess is a suspenseful game.

Without, the night was cold and wet, but in the small parlour of Laburnam Villa the blinds were drawn and the fire burned brightly. Father and son were at chess, the former, who possessed ideas about the game involving radical changes …

The house is also isolated.  We are told that there are not a lot of neighbors around.  When a mysterious stranger shows up late at night, Mr. White's old friend, this only adds to the suspense.

"That's the worst of living so far out … of all the beastly, slushy, out-of-the-way places to live in, this is the worst. Pathway's a bog, and the road's a torrent. I don't know what people are thinking about. I suppose because only two houses in the road are let, they think it doesn't matter."

The setting is suspenseful because the reader is used to expecting something bad to happen on a spooky, rainy night.  Since we are told that the Whites do not have many neighbors, this just contributes to the effect.

Something does happen when Sergeant-Major Morris arrives with the monkey’s paw.  We are told that it is dangerous, even deadly, but the Whites are only curious.  Drawn in by the paw’s promise of magic, they test it out by wishing for money.  They do not heed Morris’s warning, leading the reader to believe that something bad is going to happen because, after all, it is a dark and stormy night!