There are many factors an insurance company uses to demine the price of a homeowners' policy, according to the Insurance Information Institute. The average cost to insure a home is based on:

• The square footage of the house and any additional structures.
• Building costs in the area.
• The home's construction, materials and features.
• The amount of crime in the neighborhood.
• The likelihood of damage from natural disasters, such as hail storms and hurricanes.
• The proximity of the home to a fire hydrant (or other sources of water) and to a fire station. Whether your community has a professional or volunteer fire service and other factors that can affect the time it takes to put out fires, are considered.

The average homeowners' insurance premium rose by 3.3 percent in 2014, following a 6.0 percent increase in 2013, according to a January 2017 study by the National Association of Insurance Commissioners.

10 states with the highest homeowners' insurance cost

It's difficult to find commonalities among these states — they're spread all over the country. However, because “location, location, location” is the real estate mantra, it's a key factor that determines how much homeowners' insurance is in your area — so the cost depends heavily on where you live.

Brownstone homes line a street in the Park Slope neighborhood in the Brooklyn borough of New York. (AP Photo/Mark Lennihan)

10. New York

Median annual homeowners' insurance policy: $957.95

A house located in Portland, Oregon. (AP Photo/Rick Bowmer)

9. Oregon

Median annual homeowners' insurance policy: $1,024.80

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