Home insurance is a difficult and confusing topic. Even more challenging are the parts involved in figuring the price for usual insurance premiums. The majority of homeowners can't comprehend the reason insurance companies demand such stiff premium rates. The cost to policyholders is usually anticipated so usually they do not ask about how much money they are expected to spend. nnHowever, after individuals learn to determine their premiums, they can work with important factors, that lower them, and bid adieu to expensive home insurance plans.nnInsurance rates are based on risk. While a house situated in a low risk region invites lower premiums, exactly the opposite happens in cases of more expensive policies. nnMentioned below are some of the important factors that affect home insurance premiums: The place or location: People who stay in the Gulf coast or in the crime-riddled neighborhoods drastically increase their chances of significant ruins to their homes and other physical damages. It is mainly due to this reason that policyholders have to pay more. nnThe cost of construction in the region: Some insurers look at the construction costs in the region. It becomes vital for them to consider the cost of rebuilding the house in case of damage. If the construction cost in the area is high, the usual insurance premium for homes in the area will also be high.nnIf you are in an area with hurricanes and tornadoes you will want to use construction materials like brick or stone which withstand high winds better. In cases where the policyholders construct the house with the help of such materials, they have to pay lower premiums. nnOther risk factors on the property: Insurers also note that, the presence of trampolines, hot tubs, swimming pools or some family pooch in their property increases the injury risk to the property. In all probability, then, the insurance company will at some point raise their rates. nnPolicyholders can save most on their home coverage, provided they take certain precautions in mind. nnMentioned below are factors that are important for policyholders so that they save money: Making upgrades: Although, individuals cannot change the construction or location of their homes, they can lower their premiums by upgrading the heating and plumbing systems. nnIndividuals can lessen their premium costs by installing products such as smoke detectors, sprinklers, and deadbolt locks. In terms ofhome insurance premiums it may take money and hard work on the part of the individual it lowers the risk for both the insurers and the policyholders nnHome buyers should maintain high safety level from any unforeseen hazards. It is also important for the insurers to inquire, whether their insurance plan provides coverage for animals and other unforeseen potential liabilities. n