Your home is likely to be one of your largest investments, so it makes sense to protect that investment with the best homeowners insurance policy you can buy. It’s unlikely you’ll find a good, reasonably priced home insurance policy simply by pulling names out of thin air or choosing an insurer based on your favorite TV commercial.
The best way to find an affordable policy without sacrificing coverage is to compare home insurance quotes from multiple insurers. That’s because the price of similar coverage can vary dramatically between insurers, as you’ll see below.
compare home insurance rates by company
Here’s a look at the average cost of a home insurance policy with $300,000 in homeowners coverage among the nation’s top insurers.
what are homeowners insurance quotes?
A home insurance quote is a free estimate of how much you’ll pay for a home insurance policy. The quote is based on several factors, such as the age of the home, the building materials, the cost to rebuild the home, the claim history of your property, and the claim history of your personal home insurance. Previous claims in your area from disasters like hurricanes can also affect your home insurance quote.
Each insurer has its own formula for calculating quotes, so it’s advantageous to compare home insurance quotes from multiple companies. If you skip this crucial step, you could miss out on significant savings.
what factors influence homeowners insurance quotes?
Home insurance quotes will depend on several factors, including:
- the age of the house
- the materials that make up your home (such as stone or wood)
- the cost of rebuilding your home
- your location
- the fire resistance rating in your area
- claim history in your area
- your personal claims history
- the amount of coverage and policy limits
- the amount of your deductible
- your credit (except in california, maryland and massachusetts)
- Online. Most home insurance companies offer free quotes online. You can visit various insurance company websites to get quotes. Or you can save time by using a quote comparison website that offers quotes from multiple companies.
- On the phone or in person. You can speak with a local insurance agent who can help you choose your coverage and find the best rates. Talk to an independent agent who can collect quotes from multiple companies. A “captive” agent works for one insurance company and can give you a quote only from that insurer.
- Home: This pays to repair or rebuild your home and its attached structures, like a deck or garage, if they’re damaged by a problem covered by your policy.
- Other Structures: This pays to repair or replace structures that are not attached to your home, like barns, sheds, and fences.
- Contents: This pays to repair or replace your personal property after a problem, such as theft or fire. Your personal items include your clothing, furniture, jewelry, appliances, rugs, and other types of items.
- Liability: This pays for property damage and injuries you accidentally cause to others. For example, if your dog bites a guest, your liability insurance may pay for a court judgment, settlement, and the cost of a legal defense.
- Medical Payments to Others: This pays small medical claims for people who do not live in your household, regardless of who was at fault for the accident. For example, if a guest cuts their hand while helping you cook dinner, this coverage could pay for a trip to urgent care.
- Additional Living Expenses: If you are unable to live at home due to an issue covered by your policy (such as a fire), Additional Living Expenses coverage pays for costs such as hotel bills, meals in restaurants and others. necessary expenses, such as pet boarding or laundry service.
- Earthquake Insurance: A standard home insurance policy does not cover earthquake damage. If you live in an earthquake-prone area, consider purchasing earthquake insurance.
- Flood Insurance: A standard home insurance policy will not cover your home for flood damage. You can buy flood insurance from FEMA or from the private flood insurance market.
- Increased Housing Coverage: If a disaster occurs in your region, there may be an increase in local construction costs. Home insurance with extended or guaranteed replacement cost coverage helps absorb spikes in labor and material costs.
- Backup Water: You can typically add water replenishment coverage to cover damage caused by backed up drains, sewers, and sump pumps.
- Personal Cyber Insurance: This add-on pays expenses to help you recover from cyber attacks like ransomware attacks, data breaches, and online fraud. Some personal cyber insurance policies include access to fraud specialists, active cyber monitoring, and protection against lawsuits for libel, defamation, or unintentional online invasion of privacy.
- Replacement Cost Coverage: When it comes to actual cash value versus replacement cost coverage, replacement cost is the best option. That’s because it replaces your damaged items with new items, while actual cash value pays only depreciated value.
- your address
- date of home purchase
- the year the house was built
- approximate size of your living area
- number of stories
- number of full and half baths
- distance to a fire hydrant
- the age of your roof
- the shape of your roof (such as gable or hip)
- exterior type (such as stone, wood, or stucco)
- type of foundation (such as concrete slab or basement)
- if you have a garage (adjacent or not)
- members of your household
- any dog in your house
- information about your plumbing, electrical and heating systems
- any protection devices, such as smoke alarms, burglar alarms, or water leak detection systems
- information if you have a home business
- personal information, such as your date of birth, marital status, occupation, annual income, and credit score
- your personal claims history
- the amount of your mortgage
- your net worth (this will help determine your need for liability insurance)
How do I get free homeowners insurance quotes?
Here are two ways to get free home insurance quotes:
what does homeowners insurance cover?
A standard home insurance policy (also called ho-3) covers your home for any problems that are not excluded in your policy (such as floods, earthquakes, war and wear and tear).
Your personal property is covered for specific “perils,” which is insurance parlance for “problems.” fires, tornadoes, explosions, vandalism and theft are just some of the problems covered by home insurance.
A standard home insurance policy can be broken down into these main types of coverage:
what does homeowners insurance not cover?
A standard home insurance policy excludes several types of problems. For example, common exclusions found on a HO-3 include flood, earthquake, sinkhole, war, power failure, nuclear hazard, wear and tear, intentional loss, and insect and vermin infestations.
It is recommended that you read your policy carefully to understand what is excluded from coverage.
How do I determine how much home insurance I need?
The amount of coverage you select will be an important factor in determining your home insurance costs. Considering your financial investment in your home and all of your belongings within it, you don’t want to skimp on coverage. Having adequate coverage is crucial in the event of a disaster like a fire or tornado.
To determine how much home insurance you need, look at each type of coverage and adjust the amounts as needed. For example, you may want to consider personal property scheduling if you own high-value items like jewelry, art, or family heirlooms. You’ll also want to make sure your homeowners coverage amount matches the cost of rebuilding your home with equitable materials and that you have enough liability insurance to protect your savings and assets if you’re sued.
other types of home insurance coverage
A standard home insurance policy may not be enough for your household needs. You can usually buy add-ons to your policy or separate policies to fill gaps in coverage. here are a few to consider:
best home insurance coverage at a glance
how much does homeowners insurance cost?
The average cost of home insurance for home coverage between $300,000 and $399,000 is $1,272 per year, according to the most recent report from the National Association of Insurance Commissioners.
average cost of home insurance by state
what is the cheapest home insurance?
Our analysis of the best cheap home insurance found that, on average, progressive has the cheapest home insurance among the companies we analyzed. We also found that car and lemonade owners offer very competitive rates.
Other insurance companies may be able to offer you better rates. That’s why it’s so important to get home insurance quotes from multiple companies.
what information do I need to get homeowners insurance quotes?
To make the process of obtaining your home insurance quote as easy as possible, please have this information handy:
All of these factors can influence the cost you’ll pay for home insurance.
how to compare homeowners insurance quotes
While home insurance quotes are a key factor in choosing a company, they shouldn’t be the only consideration. The best home insurance companies also offer good customer service, important coverage types like extended and/or guaranteed replacement cost coverage, and are dog friendly.
Dog lovers will want to consider insurers that don’t exclude certain breeds from coverage. Examples of dog breeds banned by home insurance companies typically include Doberman Pinschers, Pit Bulls, Rottweilers, Chow Chows, Wolfdogs and Wolf-hybrids, Presa Canarios, and Akitas.