Have you ever wondered how an insurance company sets your home owner insurance rate—and how you can reduce it? Here's a quick look at the factors that can go into determining what home owner insurance rate you'll pay.

Insurers first look at the physical characteristics of your home: what it's constructed of, how long ago it was built, where it's located, and how far away it is from the nearest fire station and/or fire hydrant. Geography plays a part in this; for a number of reasons, owners of a $200,000 home in one state will pay a higher home owner insurance rate than owners of a similar home in another state.

Another factor in your home insurance owner rate is the features that it includes. You could get a break on your policy premiums if you have installed smoke detectors, sprinkler systems and/or security systems. An insurer may also ask if you have deadbolts on your doors and locks on your windows; your policy may cost less if you do.

Other (obvious) determining factors are the amount and type of coverage that you request. The higher the policy limits (the more expensive your home) the more you're likely to pay. If you want coverage not included in standard policies (earthquake, flood or sewer backup coverage, for example) your home owner insurance rate will also go up.

Cutting Your Home Owner Insurance Rate
Although several of the factors that go into determining your homeowners' insurance premiums are out of your control, there is one thing that you can do to get substantial savings on your premium payments: shop around and compare policies and premiums from several different insurance companies. You may be surprised to know that similar coverages from different insurers can vary in cost by hundreds of dollars.

The best place to start that comparison shopping is LocalInsurance.com. Simply go to the website, fill out the homeowner insurance quote request form and within a day or two you'll have competitive premium quotes from several leading insurers.

Localinsurance.com helps you stay in control of your homeowner's premiums by putting you in touch with insurance companies that can save you money.