4.7 / 5 15K reviews
Homeowners insurance is your best defense against property damage and financial loss from a catastrophic event. The average annual cost of home insurance in the U.S. is $2,824 for a policy with $300,000 in dwelling coverage and a $1,000 deductible.
Comparing home insurance quotes from a few different companies can help you find the right coverage at the best price.
Home insurance typically includes dwelling, other structures, personal liability, and loss of use coverage to protect your investment in your home and belongings.
Increasing your home insurance deductible typically decreases your monthly premium.
Compare rates from different insurers by selecting the type of agent to purchase from, supplying details about you and your home, and requesting price quotes based on the information you provide.
The first step in comparing home insurance rates is to decide how you want to buy your policy. Here are the three most common ways you can buy coverage:
Online comparison sites: Comparing quotes online is the fastest and most convenient option if you have a good idea of the coverage you need.
Independent home insurance agents: An independent agent sells insurance products from multiple insurance companies.
Directly via a captive insurance agent: A captive agent sells insurance products from only one insurance company.
Whichever way you choose to buy coverage, you’ll likely need to provide some personal information about yourself and other residents in the home. Insurers may ask for your date of birth, Social Security number, credit score, previous coverage and claims history, and more.
Although insurers base homeowners insurance rates on many different factors, many of the most important pertain specifically to your home. Gathering the following details in advance will help the insurers prepare the most accurate quotes.
Here are some key details insurers may want to know about your home, in addition to your address and how long you’ve lived there. Insurers can use this information and more to calculate your quotes:
How many people and pets live with you full-time?
Is this a primary or secondary home?
What type of home are you insuring? For example, is it a house, an apartment, a condo, or a manufactured home?
What is your home’s market value?
How many bedrooms and baths does your home have?
What type of roof does your home have?
What is the roof’s age?
Determining your home’s replacement cost is a good place to start when figuring out how much coverage you need. You can do this by multiplying your home’s square footage by the average cost per square foot to rebuild a similar house in your area.
It’s also important to understand the difference between actual cash value (ACV) and replacement cost coverage. If your policy has ACV coverage, the insurer will pay you the depreciated cost of repairing or replacing your damaged property. Replacement cost coverage pays you the cost of replacing your home and belongings, without deducting any depreciation.
Here’s a breakdown of the standard home insurance coverages and how different amounts will protect you.
“Perils” are the emergencies your policy covers. A named-perils policy protects you against the specific perils named in your policy. An open-perils policy protects you against all perils except those that your policy specifically excludes.
Home insurance policies, even those that cover “all perils,” have coverage gaps. Some common exclusions are:
Flooding
Earthquakes or land movement, such as landslides, mudslides, and sinkholes
Poor maintenance or routine wear and tear, such as mold due to neglect
Pest damage
Liability coverage for banned dog breeds
Homeowners insurance policies are relatively standard nationwide. Some states and insurers may offer policies that are slightly different or have other names.
These are the most common coverage types, though many homeowners add additional coverages, or endorsements, to increase their protection:
HO-1 is the policy type with the most limited coverage. It’s a named-peril policy, meaning it only covers disasters the policy specifically names and may not cover personal belongings. It covers against the first 10 perils, but it’s also no longer available in most states since it’s so limited.
HO-2 is a basic policy that covers all 16 disasters. It’s also a named-peril policy. It typically offers replacement cost protection for the dwelling and actual cash value coverage for personal belongings.
“It pays to shop around” isn’t just a catchy saying when it comes to home insurance. Comparing multiple quotes from different insurance companies is the best way to save money on your coverage.
Once you determine at least the basics of what home insurance coverage you need, it’s time to compare costs. You can ask friends for recommendations, contact your state insurance department, or check consumer guides. But the fastest way to compare quotes is with an online insurance quote-comparison tool.
Comparing quotes online with a comparison platform saves you time and energy because you only have to input your information once. You also won’t miss out on insurer discounts. For example, you can bundle your home and car insurance policies when you compare quotes and buy coverage through Insurify.
Many insurers offer ways to save on your policy. The following home insurance discounts can save you as much as 25% on your insurance, depending on your insurance company.
Comparing quotes can help you save, but finding the cheapest rate isn’t the only factor to consider. Ideally, it’s best to also feel confident in the customer service, claims satisfaction, and reliability of your chosen home insurer.
The Insurify Quality (IQ) Score considers an insurer’s financial strength, customer and claims satisfaction, the cost of premiums, coverage options, availability, and more.
Here’s a look at some national insurers and how they rank in terms of IQ Score, as well as customer satisfaction and financial strength.
Before you make any purchase decision, it’s always good to review the details. Home insurance is no different, but there might be a few concepts and terms you’re still getting familiar with.
Here are a few more important terms to know:
Claim: Your request to your insurer for reimbursement after a covered loss.
Declarations page: The page in your policy that shows your insurer’s name and address, the policy period, premium amount, and coverage amount.
Deductible: The amount you have to pay after a loss before your coverage kicks in.
Endorsement: Also known as a rider, this is a written agreement accompanying a policy that limits or expands policy benefits.
Loss: The amount your insurer pays on a claim.
Policy period: The time during which the policy is in force, or active.
Premium: The amount you pay out of pocket to your insurance company for coverage.
After you’ve reviewed the policy and are satisfied with the coverage and the price, contact an agent to answer any of your last-minute questions. For example, you may want to ask about discount opportunities or review your policy to make sure it meets your coverage needs.
Each homeowner has unique priorities and coverage needs. Thankfully, home insurance isn’t one-size-fits-all. After meeting any requirements from your mortgage lender, you can customize your coverage to suit your needs and budget.
Here, you’ll learn how a few different types of homeowners can compare quotes.
Buying a home for the first time can be intimidating, and you’ll generally need home insurance to secure a mortgage.
You can start by gathering your personal information and details about your new home. Then, think about how you want to compare quotes and buy a policy. From an agent? Through an online platform? For example, with Insurify, you can compare multiple home insurance quotes quickly and also speak with an agent to ask questions before you buy.
Next, consider your coverage needs. Your mortgage lender will likely have minimum requirements for some coverages, even additional coverage like flood insurance. Getting enough coverage to rebuild your home and replace your belongings offers the most protection. Here are the standard coverages in a home insurance policy:
Dwelling
Other structures
As a homeowner in a high-risk area, you probably need more than just a standard home insurance policy. Even standard policies have coverage gaps, such as damage from flooding and earthquakes. But sometimes, insurers also exclude perils common to a region, like wildfires.
When comparing home insurance quotes, be sure to factor in any additional coverage you’ll need. For example, if you live in a federally designated special flood hazard area (SFHA) and have a federally backed mortgage, your lender will require you to have flood insurance.
If you live in an area of California with a high wildfire risk, your insurer may exclude that from your policy, so you’ll need to purchase separate coverage for protection.
If you’re insuring a high-value home, you’ll need more coverage to provide adequate protection. HO-5 home insurance policies are popular with homeowners insuring high-value homes with costly contents. This policy type covers your home, other structures on the property, and your personal belongings, all at replacement cost value.
Gather your personal information and details about your home and property before you sit down to compare quotes. Chubb, AIG, Westfield, and National General are among the best companies for high-value home insurance, based on Insurify analysis.
Insuring a condo requires a specific type of home insurance policy. You’ll still need coverage for your personal belongings, as well as loss of use and liability protection. But when it comes to the actual structure, you’re only insuring the part you own.
Start by evaluating your belongings to determine how much coverage you need. Then, carefully read your homeowners’ association (HOA) bylaws so you understand what the condo complex’s master insurance policy covers and what it doesn’t. If you’re unsure what you need, you can always contact an insurance agent for coverage recommendations.
Here are answers to some of the most common questions home insurance shoppers are asking.
State Farm, Stillwater, American Family, Farmers, and Nationwide are Insurify’s top five picks for the best home insurance companies. But the best home insurance company for you will depend on numerous factors.
Yes. You can get a home insurance quote before purchasing a new home. You should actually consider getting more than one. Comparing insurance companies and quotes is the best way to find the best deal for your ideal coverage.
No states have laws requiring home insurance. But if you have a mortgage, it’s extremely likely your lender will require you to have home insurance to protect that asset.
Consider the cost to rebuild your home and replace your personal belongings when you’re deciding how much coverage you need. You’ll also need a minimum amount of liability and loss of use coverage.
You can compare home insurance quotes and shop for coverage with Insurify. Using an online quote-comparison tool makes the process quick and easy. If you’re new to the process, you can compare quotes online and then reach out to an agent to ask questions before buying a policy.
Insurify hasn’t identified a specific data trend of insurers quoting higher rates for first-time homebuyers. Our insurance agents also haven’t seen any increase in premiums for first-time buyers. But credit history can affect rates significantly. It’s possible that first-time homeowners may not have been able to build up their credit yet, so they may see higher rates than people with a longer credit history.
Here are answers to some of the most common questions home insurance shoppers are asking.
