Your home's value and location are two of the most significant variables that affect homeowners insurance prices. However, a few other factors can drive your premiums up or down.  Coverage levels The type of coverage you choose will impact the price you pay for homeowners insurance. Cash value coverage is typically the most affordable. With this type of coverage, your insurance company will only pay what your property is worth minus depreciation, not what it would cost to replace your home and its belongings. For more protection, you can choose replacement cost coverage instead. With this type of policy, your insurer will pay out what it would cost to repair or rebuild your home in today's dollars. For example, if a tree fell through your house and destroyed your couch, a replacement cost policy would pay whatever it costs to replace the couch. But a cash value policy would only pay what the couch is worth today. And if the couch is several years old, its value could be much less than what you originally paid. You can expect to pay more for replacement cost coverage, but it may be worth it to protect yourself against coverage gaps caused by depreciation. Other variables that affect your homeowners insurance:  The deductible you choose: As a general rule, premiums go down as deductibles go up. Age of your home: Older homes often require more work to rebuild to modern safety standards, so they can cost more to insure than newer homes. Condition of your roof: If your roof is relatively new and in good condition, you'll typically pay less than a homeowner with a roof that's old or built with lower-quality materials Past claims: You can expect to pay more if you've made several claims in the past or live in an area with a high claims rate.