The cost of homeowners insurance is based on several factors including your location and the average weather for the area you live in. You also pay more if your house is worth more since the insurance company may have to pay out more for repairs or replacement. Even the construction of your home – how it was built – plays a part in the cost of your premiums. You may be wondering, “Is homeowners insurance negotiable?” In a way, yes, because you are able to shop around for the best price. You may also change the coverage on your insurance policy, but keep in mind that you need to have enough coverage and you need to be able to pay the deductible should something happen.  So, you may be asking yourself, “why is my homeowners insurance so high?”s

Factors that Affect Homeowners Insurance Premiums

While shopping for homeowners insurance, keep in mind that the factors that affect home insurance costs include:

• Replacement cost. Be sure that you have enough insurance to cover the replacement cost of your home. This is not the same as the market value in that it doesn’t include the cost of the land. This is just the cost to build your house should something happen to it today.
• Deductibles. If your deductible – the amount you pay toward a claim – is low, your premiums will be higher. Higher deductibles will lower the insurance premiums, but you must be able to pay that deductible should something happen to your house.
• Dogs. The type of dog you own could increase the premiums on your homeowners insurance. If your insurance company lists the breed of dog you have as potentially dangerous, it will increase the liability portion of your insurance policy since the insurance company considers certain breeds a higher risk.
• Wood stove. Because a wood stove is a higher risk, your insurance company will increase your premiums to cover that risk. You might be able to mitigate some of this cost if you show that a professional installer installed the wood stove.
• Remodeling. If you add value to your home, you should contact your insurance company to increase the value the insurance covers. When you add the adequate coverage, your premiums will also increase.
• The age of home affects insurance the most. Additionally, the size of your home and how it was constructed also plays a part of the cost of homeowners insurance. Older homes are often more expensive to repair because of the features, such as ornate moldings, plaster walls, hardwood floors and stained glass windows.

How to Lower Homeowners Insurance

The biggest way to lower homeowners insurance is to shop around for the best prices. It may take some time to do this, but in the end, it’s worth it. Additional ways to reduce your premiums include:

• Raising your deductible if you can afford a larger lump sum payment should something happen to your home.
• Value your home and possessions accordingly. Make sure you don’t use market value since the land can’t be destroyed by wind, fire and other dangers.
• Sometimes bundling your home insurance with your vehicle insurance will save you money.
• Adding safety features such as storm shutters or reinforcing your roof may lower your premiums.
• Improve your home’s security by adding a burglar alarm, smoke and carbon monoxide detectors and deadbolt locks. Check with your insurance company to see which of the systems can lower the property insurance premium.
• Check for fire hydrants near the home. The distance from a fire hydrant affects the cost of premiums.

Homeowners Insurance Average Cost by State

Rates vary from state to state because of the different types of weather and risks of natural disasters. The most expensive state for homeowners insurance is Florida with average premiums of $171 per month. The least expensive is Oregon, with average premiums of $48 per month. North Carolina’s average homeowners insurance premiums are $88 per month and it is the 29^th least expensive state for homeowners insurance.