One is the geographical location of your home. Where your home is located, both city and state can have an impact on the cost of home owners insurance. In general major cities and metropolitan areas usually have higher rates. Different states also have different laws on the books that affect the types of coverage's you are required to get which can also affect the cost.

Another factor that can have an impact on how much home owners insurance will cost is the real estate market in which you are purchasing a home. In the hot markets where home values are higher then the national average the cost of insuring those homes will be much higher.

There is one other aspect of location that may affect the home owner's insurance rates. Different parts of the country are prone to different types of natural disasters. For instance if your home is located in a flood plain you may be required to purchase additional flood insurance. What many people don't realize is that conventional home owners insurance does not cover flood damage.

Probably the best way to find out how much home owner insurance is going to cost you is to get a few quotes. With the proliferation of home insurance websites there is no reason not to get several free quotes before making a final decision. And you can do this from the comfort of your own home, which is an added bonus.

Once you receive your free quotes and you are thinking that they still may be a little to much there are several things you can do to try and get a lower rate.

1. Raise your deductible. This is probably the easiest and quickest way to lower your home owner's insurance premium.

2. Combination home owners and auto insurance. Many companies will offer up to 10% off if you combine both these coverage's with them.

3. Get a security/fire alarm system installed. Most insurance providers will give a discount if you have a security system that is hard wired to a central call center.

4. Get more quotes. The more quotes you get the greater the chance of finding a premium that fits into your budget. As a rule of thumb you should get a minimum of 4 free quotes.

As you can see there are many factors that go into determining how much home owners insurance will cost you. In the end the two biggest factors will be the location of your home and its current market value.