Home insurance provides a financial safety net that protects you, your home, and your personal property against covered losses. When shopping for coverage, it’s a good idea to get quotes from at least a few insurance companies to find the right policy. Here’s a step-by-step guide to help you get and compare home insurance quotes.
How to compare home insurance quotes
Compare homeowners insurance quotes using these three simple steps:
Determine how much coverage you need
Before you start getting quotes, you should have a rough idea of how much coverage you need by considering these factors:
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The replacement cost of your home. Ideally, you should have enough coverage to rebuild your entire home. Your insurer can provide an estimated replacement cost, but you can also use a recent home appraisal, or multiply the square footage of your home by the average price per square foot to build a house in your area.
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Actual cash value vs. replacement cost value. When you buy a policy, you’ll also have the option to choose between actual cash value, where the policy reimburses you for the value of your property minus the cost of depreciation, or replacement cost value, where the policy reimburses you for the cost of repairs.
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The value of your personal belongings. You want enough personal property coverage to replace your things, including appliances, furniture, electronics, and valuables like jewelry.
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Personal liability needs. If you have additional risks on your property, such as a swimming pool or trampoline, you may want more liability coverage than standard policies offer.
Need help getting started? Check out our guide to determining how much home insurance you need.
Start shopping around
Now that you know how much coverage you need, you can compare quotes from different insurers. It’s a good idea to get at least three quotes. Doing so can help you determine the average cost of coverage based on your situation and find the best policy and insurer to meet your needs.
You can find quotes using any of the following methods.
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Online. Get quotes from the insurance company’s website or use an online insurance marketplace.
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Phone. Contact an insurer, agent, or a broker directly by phone to get a quote and ask any questions you may have about coverage.
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Face-to-face. Some insurers maintain local brick-and-mortar offices. The same is true for insurance brokers and independent agents who can gather quotes from multiple insurers.
For an accurate comparison, get quotes for the same types and amount of coverage, and choose the same deductible for each quote. In addition, make sure that each policy covers the same perils and has the same exclusions (i.e., circumstances under which your policy won’t provide coverage).
Tip: You can keep track of each quote using a spreadsheet that includes the insurer's name, coverage limit, deductible, premium, and other relevant details. Keep in mind that coverages and options can vary by insurer.
For instance, one insurer may offer a $500 deductible while another may only offer a deductible as low as $1,000. As you get quotes, note any policy differences that would affect your overall costs, both in terms of the policy premium and your out-of-pocket obligations after a claim.
Compare financial ratings and insurer reputations
It’s tempting to pick the cheapest insurer on your list, but the cheapest doesn’t always translate into the best coverage.
Before you choose an insurer, do some research and consider the following.
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Financial ratings. An insurer’s financial rating indicates its financial stability and ability to pay out on future claims. Independent credit rating agencies like AM Best or Demotech evaluate and rate insurers.
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Consumer review sites. Sites like Trustpilot can give you a peek into the experiences of other policyholders. A few bad reviews aren’t a dealbreaker — after all, unhappy customers may be more likely to turn to the internet to voice their complaints — but multiple complaints about similar problems could be a red flag. Look for issues like customer service, speed, and efficiency of the claims process, and the availability of support.
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Customer support. Interacting with a potential insurer, either through customer service reps or agents, can help you get an idea of how the insurer may (or may not) support you once you purchase a policy.
Factors that affect home insurance quotes
Many factors affect home insurance quotes, including:
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Home value and cost of materials. The higher the value of your home and the more it would cost to repair it, the more expensive your policy.
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Location. Homes in areas prone to risks, like natural disasters or crime, have a higher chance of submitting claims and are generally more expensive to insure.
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Policy terms. The coverage limit, deductible, and policy add-ons you choose will affect how much you pay for coverage.
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Age of the home. Older homes tend to cost more to insure because they may have outdated plumbing and electrical systems. Older roofs can also lead to higher costs.
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Credit-based insurance score. Insurers in most states use your credit-based insurance (CBI) score as one factor when determining rates. Several companies, like FICO, generate CBIs using many of the same factors that affect your credit score, such as payment history, outstanding debt, and length of credit history.
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Home safety and security features. Homes with safety or security features that protect against or lower the risk of break-ins, fires, storms, and other risks may see lower rates.
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Policy limits. When you purchase a policy, you’ll choose coverage limits, or the total amount your insurer will pay after a given claim. Higher limits lead to higher rates, but they provide more financial protection.
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Deductibles. Your deductible is the amount your insurer will subtract from a claim payout, representing your out-of-pocket expenses after a claim. Deductibles can range from $500 to $10,000, depending on the policy, the insurer, your home, and where you live. Higher deductibles lead to lower premiums, but you’ll pay more out of pocket after a claim.
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Policy add-ons. Also known as riders or endorsements, policy add-ons like water backup coverage provide more protection but will usually increase your rate.
Information needed to get a home insurance quote
When you get a home insurance quote, you’ll need to provide information about yourself and the property. Having the following information on hand can help you complete the quote process.
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Personal information, including your name, address, email address, date of birth, phone number, and potentially your social security number.
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Home details, such as the address and age of the home, total square footage, attached and detached structures (like a garage), number of floors and bathrooms, and information about the home's construction, such as type of roofing.
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Financial information, such as the home's value, the amount you paid/will pay for it, and information about the existing mortgage, if applicable.
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Information about improvements or upgrades, such as a new roof or updated electrical system.
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Existing policy information (if you already have coverage). A copy of your policy declaration page — often found on your insurer’s online portal or app — can make it easier to gather information about your home and existing coverage, including deductibles and endorsements.
How to get an affordable home insurance quote
There are many ways to save on home insurance and get lower rates.
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Ask about potential discounts. Most insurers offer several discounts. If you’re applying for quotes online, consider contacting the insurer to make sure your quote includes all available discounts for which you’re eligible.
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Install safety and security features. Fire and smoke alarms, burglar alarms, water detection devices, and other security and safety issues reduce the risk associated with your property and can lead to lower rates.
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Combine your home insurance policy. Also known as “bundling,” purchasing more than one type of policy, such as home and auto insurance, from the same insurer often results in a discount.
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Choose a higher deductible. A higher deductible means your insurer will pay out less after a claim, so you’ll often see a lower premium if you choose a higher deductible. But remember, you will pay more out of pocket after a claim.
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Build good credit. Practices that lead to better credit, such as improving your credit by paying bills on time, reducing outstanding debt, and limiting new credit applications, can also lead to a better insurance-based credit score.