How insurance premiums are calculated can be different from insurance company to insurance company, however, a majority of companies will use the following when determining what to charge you for your homeowner's insurance.

• Location – Insurance companies will take into consideration the crime rate in your area, how close your home is to a fire department, and the likelihood for weather-related claims.
• Type of construction – whether your home is made of wood, stucco siding, brick, or stone.
• Age of home – new homes can typically qualify for discounts. 
• Amount of coverage – the amount of coverage you purchase on your home, the contents of the home, and the liability limit will play a role in the cost of your policy.
• Loss valuation – how your policy will pay for your home in the event of a claim, whether it will pay the actual cash value or the amount it costs to replace the items lost.
• Deductible – how much of a loss you are willing to pay before you insurance kicks in.  If you have a mortgage on your home, the maximum amount of your deductible many times will be dictated by your lender.