First, no low-cost homeowner's insurance will cover your home for flood damage. If this is a concern then you'll need to ask about a special flood policy. Also, almost every low-cost home protection policy has limits for certain perils that are common to your geographical area.

For example, most policies along the Eastern Seaboard have restrictions or even exclusions for wind damage. Most policies in the Midwest have exclusions for tornado damage, and most policies along the West Coast have limited or no coverage for earthquake damage. If there is a specific peril in your region that you want coverage for you may be required to pay additional for a separate policy.

You can save money on your policy if you pay your premiums yearly, rather than monthly. You'll also save if you pay every six months, or if you pay quarterly. You'll also save if you pay monthly through an automatic payment that is deducted from your bank account.

You'll save money if you install motion-sensitive lighting around your home and if you install deadbolt locks on all exterior doors and locking mechanisms on every window.

If you purchase a home security system that monitors your home 24/7 you could save as much as 20% each and every month. Your agent needs to be consulted before you decide on a home protection system since not every system qualifies for the maximum discount on your monthly premium. You may be able to save even more on a home security system if you run a business out of your home. Talk to your tax advisor and see if a portion of the cost will be tax deductible.

Installing fire, smoke, and carbon monoxide detectors throughout your house may also reduce your cost of insurance, as will installing a special kitchen-rated fire extinguisher in your kitchen. Let your agent know if anyone 55 or older and retired is living in your home; this will also save you money.

Staying with the same insurance company three years or more can qualify you for a rate reduction. Consolidating all of your insurance policies with the same company will earn you a Multi-Policy Discount.

Only buy enough homeowner's insurance to cover the cost of rebuilding your house from the foundation up and for the cost of replacing the contents of your home - do not make the mistake of paying extra for insuring the value of the land under your home. Most homeowner's buy a policy with a standard $500 deductible. If you can afford to double that deductible to $1,000 you can save as much as 25% on your monthly premium.

You'll also save by purchasing your insurance online. You'll find literally dozens of websites that want you to compare the prices that different insurance companies charge for insurance. The problem is, each site only compares the prices of a tiny handful of companies and you want to see the prices of virtually every company that sells home insurance in your state.

The answer? Simple. Just make your price comparisons on 3 different websites. In this way you should see the prices of almost every company and this can save you a bundle.

Once you've made all of your price comparisons all that's left is for you to decide which companies you feel comfortable with and then pick the best price from among those companies. You now know virtually everything you need to know in order to find the most affordable high risk homeowner's insurance available in your state. Good luck!