Type of Coverage

• Typical insurance coverage includes the structure and contents. Policies protect against water damage and also cover lightning, wind and hail damage to the house. Personal property may not be insured under the policy. Owners with large amounts of art, jewelry or specialized collections typically buy additional coverage for the special valuables. Insurance may cover the homeowner against lawsuits from guests who trip on stairs or work crews falling due to faulty conditions at the home during the repairs.
  
  

Structural Coverage

• The costs of home insurance policies vary with the type of the home. Wood houses typically cost more to insure than brick or stone homes. The roofing material also impacts costs. Expensive and highly flammable roofing materials such as wood shake increase premium costs due to the increased likelihood of fire when compared to policies covering metal, tile or asphalt shingle roofing. Homes with basements pay higher costs for premiums due to increased chances for flooding and water damage.
  
  

Home Electric Systems, Heating & Cooling

• Home insurance policies cover home heating, electric and cooling systems and protect against loss from fire related to defects from these systems. Older furnaces increase the premium since the risk for fire is higher in antiquated or outdated heating systems. Replacement costs for air conditioning units add cost to the insurance policy. In some counties, companies refuse to issue insurance on homes with electricity provided by fuse systems. The Insurance Information Institute finds homes with newer electric, plumbing and heating systems, defined as less than 10 years old, pay lower insurance premiums compared with homes with older systems.
  
  

Home Location

• The home location may increase the premium costs. The distance from the house to riverbeds, lakes or the ocean may make the home uninsurable. Mortgage holders on houses located in regions with high-risk areas for natural disasters might be forced to purchase higher-cost, government-backed insurance policies. The Insurance Information Institute recommends seeking out private insurance from select companies interested in taking a higher risk to lower the homeowners' premium costs rather than accepting special-funding high-risk federal policies.
  
  

Distance From Assistance

• The availability of fire hydrants, distance from local fire stations and the type of fire response, either volunteer or full-time fire department, all factor into the costs for homeowners insurance. Higher premiums result when a home has volunteer fire response and fails to provide access to municipal water hydrants. Canyon homes, with only one entrance to the house location, may find insurance companies deem the risk unacceptably high for writing coverage. Residences in these areas must purchase state-backed policies when traditional companies refuse.