What Factors Affect a Home Insurance Premium?

Apart from very specific factors, most insurance companies will use the following factors when considering what rate to charge you for your home insurance.

1. Age of home - If you have a new home, you can usually qualify for discounts. 
2. Kind of construction - The materials used in the construction of your home, whether your home is made of wood, stucco siding, brick, or stone.
3. Location - Location, location, location is not only important to real estate agents, Insurance companies will take into account the amount of crime in your area, the proximity of your home to a fire department, and the potential for weather-related claims.
4. Degree of coverage - The amount of coverage you purchase on your house, the contents of the house, and the liability restrictions will determine the cost of your policy. The greater coverage, chances are the greater the rates.
5. Deductible - How much damage you are willing to pay for before you insurance kicks in?  If you have a mortgage on your house, the maximum amount of your deductible often times will be appointed by your lender.
6. Loss valuation - How your policy will handle payment for your house in the eventuality of a claim, whether it will pay the actual cash value or the amount it costs to recoup the items lost.