The cost of homeowners insurance can vary tremendously depending on the amount of coverage you purchase, the part of the country you live in and even your credit-based insurance score.
The amount of coverage you purchase for your home can best be determined by a licensed and experienced insurance agent. They will calculate your premium based on the size and building type of your home, your liability protection needs and any endorsements or riders that need to be added to your policy.
The part of country you live in can also affect your homeowners insurance rates. For example, homeowners located on the southeastern seaboard have historically paid higher home insurance premiums as they are at more of a risk for hurricanes than homeowners living inland. State departments of insurance are also responsible for helping to set the rate changes allowed by certain providers in your area, so state-specific regulations can affect your rate as well. Also, since building costs vary across the country you may see higher premiums in an area where local building costs are higher.
Different liability protection limits can be purchased for your policy which protect you in the event of a covered lawsuit. Individuals who would like added liability protection may increase their limits from the standard coverage provided and will therefore pay slightly higher homeowners insurance premiums.
Finally, since a homeowners insurance policy has certain limits for what is covered in terms of personal possessions, some homeowners may purchase a rider, or schedule an endorsement, on their policy to increase limits for a certain item. For example, if your home insurance policy covered only up to $1500 for jewelry and you owned a diamond ring worth $2000, you may have your insurance agent schedule an endorsement on your policy to cover that specific, high-value item.