The price you pay for your homeowners insurance can vary by hundreds of dollars depending on a number of factors, including the company you buy your policy from. Here are twelve steps you can take to help you save money on this vital and necessary part of owning a home.

1) Shop Around - It'll take some time, but could save you a good sum of money. Ask your friends, check the Yellow Pages or call your state insurance department. States often make information available on typical rates charged by major insurers and many states provide the frequency of consumer complaints by company. Also check consumer guides, insurance agents, companies and online insurance quote services. This will give you an idea of price ranges and tell you which companies have the lowest prices. Check the financial ratings of the companies with AM Best or Standard and Poor's.

2) Raise Your Deductible - Deductibles are the amount of money you have to pay toward a loss before your insurance company starts to pay a claim, according to the terms of your policy. The higher your deductible, the more money you can save on your premiums. Nowadays, most insurance companies recommend a deductible of at least $500. If you can afford to raise your deductible to $1,000, you may save as much as 25 percent.

3) Buy Your Home and Auto Policies from the Same Insurer - Some companies that sell homeowners, auto and liability coverage will take 5 to 15 percent off your premium if you buy two or more policies from them. But make certain this combined price is lower than buying the different coverages from different companies.

4) Make Your Home More Disaster Resistant - Find out from your insurance agent or company representative what steps you can take to make your home more resistant to windstorms and other natural disasters. You may be able to save on your premiums by adding storm shutters, reinforcing your roof or buying stronger roofing materials.

5) Don't Confuse What You Paid for Your House with Rebuilding Costs - The land under your house isn't at risk from theft, windstorm, fire and the other perils covered in your homeowners policy. So don't include its value in deciding how much homeowners insurance to buy. If you do, you will pay a higher premium than you should. (This is one I have known for years and most owners don't)

6) Improve Your Home Security - You can usually get discounts of at least 5 percent for a smoke detector, burglar alarm or dead-bolt locks. Some companies offer to cut your premium by as much as 15 or 20 percent if you install a sophisticated sprinkler system and a fire and burglar alarm that rings at the police, fire or other monitoring stations.

7) Seek Out Other Discounts - Companies offer several types of discounts, but they don't all offer the same discount or the same amount of discount in all states. That's why you should ask your agent or company representative about any discounts available to you.

8) See If You Can Get Group Coverage - If your employer administers a group insurance program, check to see if a homeowners policy is available and is a better deal than you can find elsewhere. In addition, professional, alumni and business groups often work out an insurance package with an insurance company, which includes a discount for association members.

9) Stay With the Same Insurer - If you've kept your coverage with a company for several years, you may receive a special discount for being a long-term policyholder. Some insurers will reduce their premiums by 5 percent if you stay with them for three to five years and by 10 percent if you remain a policyholder for six years or more.

10) Review the Limits in Your Policy and the Value of Your Possessions at Least Once a Year - You want your policy to cover any major purchases or additions to your home. But you don't want to spend money for coverage you don't need.

11) Look for Private Insurance if Your Are in a Government Plan - If you live in a high-risk area -- say, one that is especially vulnerable to coastal storms, fires, or crime -- and have been buying your homeowners insurance through a government plan, you should check with an insurance agent or company representative or contact your state department of insurance for the names of companies that might be interested in your business. You may find that there are steps you can take that would allow you to buy insurance at a lower price in the private market.

12) When You're Buying a Home, Consider the Cost of Homeowners Insurance - You may pay less for insurance if you buy a house close to a fire hydrant or in a community that has a professional rather than a volunteer fire department. It may also be cheaper if your home's electrical, heating and plumbing systems are less than 10 years old. Choosing wisely could cut your premiums by 5 to 15 percent.

Remember that flood insurance and earthquake damage are not covered by a standard homeowners policy. If you buy a house in a flood-prone area, you'll have to pay for a flood insurance policy that costs an average of $400 a year. The Federal Emergency Management Agency provides useful information on flood insurance on its Web site at www.fema.gov. A separate earthquake policy is available from most insurance companies. The cost of the coverage will depend on the likelihood of earthquakes in your area.

If you have questions about insurance for any of your possessions, be sure to ask your agent or company representative when you're shopping around for a policy.

Kirk Brandau is a real estate agent in Killeen, TX