A few factors that affect home insurance premium are:

• Size and value of the asset(s)

  The most obvious factor is the value of your property, home contents, or personal belongings. The more expensive the asset, the higher the premium. The insurance provider will assess the value of your asset(s). It will be the cost of rebuilding or replacing your asset. Then they will determine how much premium needs to be charged on the level of coverage you require.

• Location and risk involved

  Location is a significant factor in home insurance. If your building is an expensive part of town, it's likely to have more security and less risk of vandalism. If you're renting in a less than safe part of town, you might be at higher risk of theft and fire damage. Location and risk are significant factors that decide your home insurance premium.

• Claims and insurance history

  Your personal history is also factored in. How old you are, your job security if you're renting, how many people will be living in the house, and do you have the capacity to keep assets maintained. The home insurance provider will also look through previous claims. If you have a string of claims in the past, you will likely get a higher premium.

• Choice of coverage plan

  Not all coverage plans are the same. If you choose higher coverage limits, or if your property has a higher value, then you will have a higher premium. It will cost more if you decide to get both personal belongings and home contents covered. If you only choose to purchase home content cover, you'll save on premium costs. So a portion of your final premium depends on which coverage plan you choose.

• Choice of insurance provider

  Which insurance provider you choose will also factor into how your premium will be calculated. Some companies are risk-averse and tend to charge higher premiums. Some are inclined to be a bit more budget-friendly. Do thorough market research before you sign up with one.