How To Compare Homeowners Insurance Quotes

Because your home is likely one of your largest investments, it makes sense to protect it with the best homeowners insurance policy money can buy. You're unlikely to find a good home insurance policy at a reasonable price by pulling names out of thin air or selecting an insurer based on a favorite TV commercial.

Comparing home insurance quotes from multiple insurers is the best way to find an affordable policy without sacrificing coverage. This is because, as you'll see below, the cost of similar coverage can vary greatly between insurers.

Here's a look at the national average for a home insurance policy with $300,000 in dwelling coverage from the top insurers.

What Are Quotes for Homeowners Insurance?

A home insurance quote is a free estimate of the cost of a home insurance policy. The quote is based on a number of factors, including the age of the house, the building materials used, the cost of rebuilding the house, the claims history of your property, and your personal home insurance claims history. Previous claims in your area for natural disasters such as hurricanes can also have an impact on your home insurance quote.

Each insurer has its own formula for calculating quotes, which is why comparing home insurance quotes from multiple companies is beneficial. You could lose out on significant savings if you skip this critical step.

What Factors Influence Homeowners Insurance Quotes?

Home insurance quotes will be influenced by a number of factors, including:

• The residence's age
• The materials used to construct your home (like stone or wood)
• The cost of rebuilding your house
• Your current location
• The fire rating in your area
• The history of claims in your area
• Your individual claim history
• The amount of coverage and the policy limits
• The amount of your deductible
• Your credit (except in California, Maryland and Massachusetts)

How Do I Get Free Homeowners Insurance Quotes?

Here are two methods for obtaining free home insurance quotes:

• Online. The majority of home insurance companies provide free quotes online. You can get quotes from various insurance companies by visiting their websites. Alternatively, you can save time by using a quote comparison website, which provides quotes from multiple companies.
• Telephone or in-person. You can speak with a local insurance agent who can assist you in selecting your coverage and obtaining the best rates. Speak with an independent agent who can obtain quotes from a variety of businesses. A "captive" agent works for a single insurance company and can only provide you with quotes from that company.

What Does Homeowners Insurance Cover?

A standard home insurance policy (also known as a HO-3) protects your home against any problem that is not specifically excluded in your policy (such as floods, earthquakes, war and wear and tear).

Your personal property is protected against specific "perils," which are insurance jargon for "problems." Home insurance covers a variety of problems, including fires, tornadoes, explosions, vandalism, and theft.

A typical home insurance policy is divided into the following coverage types:

• Dwelling: This covers the cost of repairing or rebuilding your home and any attached structures, such as a deck or garage, if they are damaged by a covered problem.
• Other structures: This is beneficial for repairing or replacing structures that are not attached to your home, such as barns, sheds, and fences.
• Contents: This covers the cost of repairing or replacing your personal property following a problem, such as theft or fire. Clothing, furniture, jewelry, appliances, rugs, and other items are examples of personal items.
• Liability: This compensates you for any property damage or injuries you inadvertently cause to others. For example, if your dog bites a visitor, your liability insurance may cover the cost of a court judgment, settlement, and legal defense.
• Medical payments to others: This covers minor medical claims for people who do not live in your home, regardless of who was at fault in the accident. For example, if a guest cuts their hand while helping you prepare dinner, this coverage may cover the cost of a trip to the emergency room.
• Additional living expenses: If you are unable to live in your home due to a covered problem (such as a fire), additional living expenses coverage will pay for costs such as hotel bills, restaurant meals, and other necessary expenses such as pet boarding or laundry service.

What Is Not Covered by Homeowners Insurance?

Several types of problems are not covered by a standard home insurance policy. Floods, earthquakes, sinkholes, war, power failure, nuclear hazard, wear and tear, intentional loss, and vermin and insect infestations are examples of common exclusions found in a HO-3.

It is recommended that you carefully read your policy so that you understand what is not covered.

How Do I Determine How Much Homeowners Insurance I Need?

The amount of coverage you choose will play a significant role in determining your home insurance costs. You don't want to skimp on coverage because of your financial investment in your home and all of your belongings within it. In the event of a disaster, such as a fire or tornado, having adequate coverage is critical.

Examine each coverage type and adjust the amounts as needed to determine how much home insurance you require. If you own high-value items such as jewelry, artwork, or family heirlooms, you may want to consider scheduling personal property. You should also ensure that your dwelling coverage amount corresponds to the cost of rebuilding your home with comparable materials, and that you have adequate liability insurance to protect your savings and assets if you are sued.

Other Home Insurance Coverage Types

A standard home insurance policy may not be adequate for the needs of your home. To fill coverage gaps, you can typically purchase add-ons to your policy or separate policies. Here are a few to think about:

• Earthquake insurance: A standard home insurance policy excludes earthquake damage. Consider purchasing earthquake insurance if you live in an earthquake-prone area.
• Flood insurance: A standard home insurance policy will not cover flood damage to your home. FEMA or the private flood insurance market are both options for purchasing flood insurance.
• Increased dwelling coverage: If a disaster strikes your area, local construction costs may rise. Home insurance that provides extended or guaranteed replacement cost coverage helps to absorb increases in labor and material costs.
• Water backup: Water backup coverage can typically be added to cover damage from clogged drains, sewers, and sump pumps.
• Personal cyber insurance: This add-on reimburses you for expenses incurred as a result of cyber attacks such as ransomware, data breaches, and online fraud. Access to fraud specialists, active cyber monitoring, and lawsuit protection for unintentional online libel, slander, or invasion of privacy are all features of some personal cyber insurance policies.
• Replacement cost coverage: When deciding between actual cash value and replacement cost coverage, replacement cost is the better option. This is due to the fact that it replaces your damaged items with new items, whereas actual cash value only pays the depreciated value.

Better Home Insurance Coverage at a Glance

How Much Does Homeowners Insurance Cost?

According to the most recent National Association of Insurance Commissioners report, the average cost of home insurance for dwelling coverage between $300,000 and $399,000 is $1,272 per year.

Average home insurance cost by state

What Is the Cheapest Homeowners Insurance?

According to our analysis of the best cheap home insurance companies, Progressive has the cheapest home insurance on average among the companies we looked at. In addition, we discovered that Lemonade and Auto-Owners provide very competitive rates.

Other insurance companies may be able to provide you with lower rates. That is why it is critical to obtain home insurance quotes from multiple companies.

What Information Do I Need to Get Homeowners Insurance Quotes?

Have the following information on hand to make the process of gathering home insurance quotes as easy as possible:

• Your address
• Your home's purchase date
• The year the house was constructed
• Your living space's approximate size
• Number of stories
• The total number of full and half bathrooms
• The distance from a fire hydrant
• The age of your roof
• The shape of your roof (like gable or hip)
• Type of exterior (like stone, wood or stucco)
• The kind of foundation (like slab or concrete basement)
• If you own a garage (attached or unattached)
• Members of your family
• Do you have any dogs in your house?
• Details about your plumbing, electrical, and heating systems
• Any safety devices, such as smoke detectors, burglar alarms, or water-leak detection systems
• Information if you are running a home-based business
• Personal information, such as your date of birth, marital status, occupation, annual income and credit score
• Your individual claim history
• The amount of your mortgage
• Your net worth (this will help determine your liability insurance need)

All of these factors can have an impact on the cost of your home insurance.

How to Compare Homeowners Insurance Quotes

While home insurance quotes are important in selecting a company, they should not be the only factor. The best home insurance companies also provide excellent customer service, essential coverage types such as extended and/or guaranteed replacement cost coverage, and are dog-friendly.

Dog owners should look for insurers that do not exclude specific breeds from coverage. Dog breeds that are typically prohibited by home insurance companies include Doberman Pinschers, pit bulls, Rottweilers, Chow Chows, wolf dogs and wolf hybrids, Presa Canarios, and Akitas.