Home Insurance: Places With Lowest and Highest Rates -- and Why

Blair Hudson is an insurance underwriter in Dallas, Texas, who lives in a $400,000, 4,000-square-foot home. He pays $1,800 a year in homeowner's insurance. His twin brother lives outside of Chicago, Ill. in a $600,000 home half the size of Blair's, and pays $900 for virtually the same coverage. Blair knows why he pays more for homeowner's insurance in a cheaper home: He lives in one of the most expensive insurance states in the union.

When it comes to pricing homeowner's insurance, location dominates your premium. Is your state notorious for bad weather? Do you live in a crowded city or sparsely populated town? What's the crime rate? Live near the border? Actuaries even figure in how close your home is to the fire hydrant. But that's not all. Here's what else might affect your home insurance rates.