A home is the biggest asset and the most significant expense for most Americans.
Homeowners insurance will protect you from financial hardship if you need to rebuild or replace your home or the items in your home. Additionally, homeowners insurance protects your assets if you're sued for an injury that occurred on your property.
Before purchasing a homeowners insurance policy, you can obtain a quote online or through an insurance agent. To ensure you're getting the best homeowners insurance at a price you can afford, you’ll need to compare homeowners insurance quotes from multiple carriers.
Why Comparing Home Insurance is Important
Researching home insurance quotes is an effective way to get the best value for your coverage needs.
Many consumers make a mistake comparing the prices of different policies without looking at what the policy entails, a quantitative over qualitative analysis. Choosing the lowest price can mean you're underinsured.
"Shop around for insurance policies to make sure you're getting the best level of protection for your home along with proactive home services, smart devices, and great customer service if a claim occurs," says Steve Wilson, director of technical underwriting at Hippo Insurance.
Benefits of Shopping Around for Homeowners Insurance
Although most people only shop for a new home insurance policy when they’re in the home-buying process, you can get quotes for a policy at any time. Requesting a new home insurance quote doesn’t mean you’re agreeing to any type of commitment, and it’s completely free to do. Taking the time to shop around for a new home insurance policy could lead to substantial savings.
Here are a few benefits to shopping around for homeowners insurance:
- You discover better coverage options available
- You find the same coverage you already have but for a better rate
- You realize you need more coverage and can get it at a good value
How Home Insurance Rates Vary by Provider
Not only do home insurance premiums greatly differ by location, but they can vary between insurance companies as well. While some insurance providers offer coverage nationwide, others only sell policies in specific regions. Each company uses its own method to determine premium costs.
Factors such as the age of your home and the materials used in its construction can impact your rates. To secure the best deal, it's a good idea to do a homeowners insurance quote comparison that includes several different insurers based on the coverage amount you need or your specific dwelling coverage limit.
Additionally, you’ll want to research a company’s reputation. This can give you peace of mind that you’re choosing a reliable and trustworthy insurer.
An insurance company's financial strength score determines how well a company can pay out claims. If you purchase a quote from a company that is low in financial strength, it may not be able to compensate you when you need it most.
A popular independent rating agency is AM Best. It ranks insurance companies from A+ to F. Anything lower than a B means that a company is not financially stable and may not be able to pay claims at any given moment.
Factors That Affect Home Insurance Costs
A home insurance quote estimates your home insurance premium based on your risk. Multiple factors can affect the cost of your homeowners insurance. Here are a few:
- Coverage limits: The amount of coverage you need will impact the overall cost of your premiums. The more an insurance company has to pay to replace your home, the more of a liability you are to the insurance company. Four parts of standard homeowners insurance will need coverage: dwelling, personal property, liability, and additional living expenses if your home becomes uninhabitable because of damage.
- Claims history: A good claim history is essential for lower premiums. You can expect a rate increase for a single claim, with larger increases for things like fire and theft over weather, and for second claims, according to Insure.com. Many providers will refuse to insure your home after a third claim. Insurers will usually report claims to the Comprehensive Loss Underwriting Exchange (CLUE) database and will use this information to assess you and your property's claim history. To get a copy of the CLUE home seller's disclosure report, visit LexisNexis, email consumer.documents@lexisnexis.com, or call 1-888-497-0011.
- Location: Expect higher premiums if you live in an area with high theft or an area at higher risk of floods, earthquakes, and other natural disasters.
- Home condition and age: The age, construction, and replacement cost of your home are critical factors in determining your insurance premiums. An older home constructed with materials susceptible to damage or a home with a higher replacement cost may have higher rates. Remodeling your home could also increase premiums as updated items will be more expensive to replace. Home security systems will usually decrease your premiums because you are less susceptible to risks such as theft.
- Home features: Pools, hot tubs, and trampolines are considered high-risk features. Therefore, it can potentially increase your premiums if you have them, Wilson says.
- Deductible: A deductible is an amount you pay before your insurance company compensates for damage. A higher deductible usually means lower premiums and a lower deductible means higher premiums. However, you must consider if you can pay a higher deductible upfront if you need to file a claim.
- Credit history: Insurance companies use credit history to determine a customer's ability to pay on time. Good credit scores usually indicate less liability for the insurance company, thus lower premiums or an increased chance of qualification for insurance during the application process.
How to Compare Homeowners Insurance Policies
As insurance costs rise, it is more important than ever to look for saving opportunities. We don’t recommend lowering your coverage to lower your premiums. There may be other ways to curtail your costs, including comparison shopping.
Understanding Coverage Options (Dwelling, Liability, Personal Property, and more)
When comparing quotes, make sure that each policy is on equal footing in coverage types and coverage limits. The policy with the higher coverage limit will usually cost more but might be enough to replace your property or protect your assets in case of damage or a lawsuit. Be sure to factor in riders, endorsements, or extra coverages you might include in your policy.
Here are some of the recommended policy limits from Triple-I:
- Dwelling coverage: The cost to replace your home and other detached structures for your home. Consider purchasing an inflation guard endorsement to protect your dwelling's replacement cost from inflation.
- Personal property coverage: The advised coverage cost for personal property is 50% to 75% of the coverage on your dwelling. Consider purchasing a property floater for high-valued items that require more coverage, like expensive jewelry.
- Liability coverage: The minimum liability coverage amount is $100,000, but Triple-I experts recommend getting at least $300,000 to $500,000. Consider purchasing an umbrella policy if you need more.
- Additional living expenses: Most policies offer 20% of the insurance on your house for additional living expenses if your home is uninhabitable due to a covered loss.
The Importance of Deductibles and Premiums
A home insurance deductible is the amount that you’re required to pay when you submit a claim. For example, if a storm causes damage to your roof that costs $10,000 to repair and your deductible is $2,000, then your insurer will cover the remaining $8,000.
A home insurance premium is the set amount you agree to pay for insurance coverage. Usually, home insurance premiums are paid monthly or annually, depending on the company.
In most cases, the higher your insurance deductible, the lower your insurance premium costs will be. However, if you choose a higher deductible, make sure you have money set aside to pay the deductible in the event you need to file a claim.
Additional Coverages: Flood, Earthquake, and More
Many standard home insurance policies don’t cover flood or earthquake damage. If there’s a likelihood of floods or earthquakes in your area, you may want to consider purchasing this additional coverage.
In some cases, you may be required to purchase additional coverage. For instance, if your mortgage is from a federally regulated or insured lender and you live in a high-risk flood zone, you’re required to purchase flood insurance. Homeowners can go to the National Flood Insurance Program’s (NFIP) website or call (877) 336-2627 to find an insurer that provides flood insurance.
Top Home Insurance Providers Compared
Best Companies for Affordable Coverage
The average annual premium for homeowners insurance in the U.S. in 2024 was $2,584, according to Insurify. It's also worth mentioning that the cost of homeowners insurance is steadily rising as a result of intensifying climate-related events like wildfires and hurricanes.
Here are rates at some of the cheapest homeowners insurance companies, according to Insurify (quoted for a $300,000 replacement cost value).
| Insurance company | Average annual premium |
| Erie | $1,656 |
| American Family | $1,702 |
| Travelers | $2,282 |
| ASI | $2,355 |
| Allstate | $2,401 |
Source: Insurify
Top-Rated Home Insurance for Customer Service
It's a good idea to look into a company's customer satisfaction. JD Power's Home Insurance Study ranks major insurance companies based on a 1000-point scale, factoring in price, claims, billing process, policy offerings, and interaction.
Here is a look at the top home insurance providers for customer satisfaction, according to JD Power.
| Insurance company | Overall Customer Satisfaction Index Ranking |
| Chubb | 688 |
| AIG | 680 |
| Amica | 679 |
| Erie | 674 |
| Automobile Club of Southern CA (AAA) | 671 |
Source: JD Power
Best Options for High-Value Homes
High-value homes require more coverage to ensure proper protection. HO-5 home insurance policies are a popular choice for homeowners with expensive homes and belongings. This type of policy covers your home, other structures on your property, and personal items, all at replacement cost value.
Insurers such as Chubb, AIG, and Westfield are popular for high-value home insurance. Here are the annual national average rates for $1 million of dwelling coverage, based on data from Insurify:
| Insurance company | Average annual premium |
| AIG | $4,141 |
| Chubb | $8,165 |
| Westfield | $2,511 |
Source: Insurify
Home Insurance Quotes Comparison: What to Look For
A home insurance policy should cover your risk with reasonable deductibles. If you live in an area at high risk for weather-related events, such as hurricanes, you may need additional coverage through a policy rider or a standalone policy. Choose an insurance company that has a strong record of paying out claims and a good reputation for customer service.
How to Get Accurate Home Insurance Quotes
Most insurance providers offer an online quoting tool to get estimates, but independent agents and third-party quoting tools can get multiple quotes simultaneously. When using third-party quoting tools, ensure that the same coverages and deductibles are listed.
The Insurance Information Institute (Triple-I) recommends obtaining quotes from at least three different companies. You can even ask your friends or relatives for recommendations on trustworthy providers as a starting point for your search.
Another good place to start is contacting your state's insurance department to find out about enforcement action against a provider. Your state's insurance department may also be able to provide you with average rates for major insurers.
What Influences Homeowners Insurance Quotes?
Your home’s location, age, and condition, in addition to your personal credit score and claims history, will factor into your insurance premium. Your deductibles and coverage limits will also influence your rate.
To verify this information, insurers may ask you to provide the following information:
- Personal information: Name, date of birth, marital status, and contact information.
- Home details: Address, how long you've lived there, what type of home you reside in and if it's your primary residence, if there's a mortgage on the property, the year it was built, square footage, the age of your roof, number of bedrooms and bathrooms and number of stories.
- How your home was built: The material your building, exterior wall, and roof are made of, the heating or cooling systems, and the type of foundation and construction.
- Safety: How far is your home from the nearest fire station and fire hydrant? Do you have home safety systems and other safety measures?
- If you need extra coverage: Jewelry and high-end electronics and operating a business out of your home may be reasons to seek additional coverage through a policy rider or endorsement.
Comparing Policy Exclusions and Limitations
When you’re doing a home insurance quote comparison, you’ll want to be familiar with policy exclusions and limitations. It’s just as important to know what your insurance policy doesn’t cover as what it does.
A policy exclusion is damage that is explicitly listed in your insurance policy as not covered. Examples of common policy exclusions include flooding, pre-existing damage, mold, pests, and earthquakes.
A home insurance policy limitation is the maximum amount your insurer is willing to pay for certain types of claims. For example, dwelling limits refer to the amount it would be to replace your home if it were a total loss. Most mortgage companies will require you to have enough dwelling coverage to cover the amount of your loan.
How to Save Money When Comparing House Insurance
Discounts for Bundling Home and Auto Insurance
You can get additional savings on your insurance premiums by bundling multiple insurance products like your auto and home insurance policies. Discounts can also reduce your premiums substantially.
Insurance providers usually have a list of discounts that they offer on their website. Alternatively, you can get on the phone with an insurance agent to see if you qualify for additional discounts that your online quote might not have included.
How Home Security Systems Can Lower Your Premiums
Discounts for home security systems vary by insurance company, but according to Policygenius, you can expect to save anywhere from 2% up to 15%. Home security systems that can potentially lower your insurance premium include:
- Deadbolts
- Burglar alarms
- Surveillance cameras, such as a Ring doorbell camera
- Professional home monitoring, such as ADT
- Living in a gated community
Ways to Reduce Costs Without Sacrificing Coverage
Another benefit of shopping around is taking the time to research any additional benefits you might be eligible for. You can look at the company's website to see if there are any available discounts or programs your online quote may have left out.
There are different discounts for every situation, and you may miss out on valuable saving opportunities if you don't check. You can also get on the phone with an agent to discuss additional discounts you may qualify for.
These are the most common home insurance discounts, according to Wilson:
- Signing up for coverage before your existing policy expires
- Being claim-free for several years
- Owning a fire extinguisher
- Living in a gated community
- Paying for your home without a mortgage
- Insuring a newly constructed home
Compare Home Insurance by State and Region
Home Insurance Costs in High-Risk Areas
High-risk areas tend to come with higher insurance premiums and additional coverage needs. Most standard insurance policies have coverage gaps. Depending on where you live, you may need to purchase additional coverage, such as flooding insurance, earthquake insurance, wildfire insurance, wind insurance, and more.
The state of Florida has the most expensive home insurance costs in the U.S. According to Insurify, the average annual cost of home insurance for $300,000 worth of dwelling coverage in Florida is $9,213. Furthermore, states with average annual rates above $4,000 for the same coverage include Oklahoma, Louisiana, and Mississippi.
Best States for Affordable Home Insurance
Several factors, such as inflation and climate change, make finding affordable home insurance increasingly challenging. Vermont has the least expensive home insurance, with the average annual costs for the same coverage sitting at just $914, according to Insurify.
Here are the states with the lowest insurance rates for $300,000 worth of dwelling coverage.
| State | Average annual premium |
| Vermont | $914 |
| Utah | $1,018 |
| Oregon | $1,049 |
| Nevada | $1,103 |
| Delaware | $1,134 |
| Alaska | $1,144 |
| Maine | $1,169 |
| Idaho | $1,180 |
| New Jersey | $1,184 |
| New Hampshire | $1,190 |
| Ohio | $1,192 |
| Washington | $1,201 |
| Hawaii | $1,287 |
| Wisconsin | $1,299 |
| California | $1,341 |
| Pennsylvania | $1,356 |
| Virginia | $1,396 |
| West Virginia | $1,403 |
| Maryland | $1,538 |
| Connecticut | $1,583 |
| Montana | $1,595 |
| Arizona | $1,609 |
| Massachusetts | $1,649 |
| Michigan | $1,671 |
| Illinois | $1,753 |
| Indiana | $1,770 |
| Wyoming | $1,888 |
| New York | $1,942 |
| Iowa | $1,956 |
| North Carolina | $1,967 |
Source: Insurify
How Location Affects Coverage and Pricing
Insurance premiums are directly influenced by the location of your home. Coverage and pricing can vary not only by your state but also by your ZIP code. If your home is located in an area that is known for losses or damage, then you might expect higher rates.
For instance, if you live on the coast of Florida in an area that’s prone to hurricanes, your insurance premiums will be higher than if you were living in an area such as Iowa that isn’t as likely to frequent natural disasters. Plus, if you live in an area like Florida, you’ll also need to consider additional coverage, such as flood insurance and wind insurance.
Homeowners Insurance Comparison Tools & Resources
Best Online Comparison Tools for Home Insurance
When using an online house insurance comparison tool, be sure to enter the same information about your home, coverages, and deductibles for each company. You’ll want to use a tool that allows you to review at least three different house insurance comparison quotes. Getting quotes from multiple companies is the best way to find the most value for your money when shopping for a home insurance policy.
Online platforms like Insurify, Policygenius, and Zebra let you compare homeowners insurance from hundreds of providers simultaneously. Not only do these home insurance quote comparison tools save you time, but they can also save you money. To get started, you can go to the platform’s home insurance page and enter your zip code. The site will then ask you several questions about your home and then generate quotes from top providers at no cost to you.
How to Use an Insurance Broker to Compare Quotes
An insurance broker is a person that connects you with an insurer. Insurance brokers are an excellent option if you prefer to work with a live person rather than using an online tool to compare homeowners insurance quotes.
You’ll provide the insurance broker with your personal information, information about your home, and your coverage needs, and they'll do the legwork of reaching out to each insurance company and requesting a quote on your behalf. Although an independent home insurance broker doesn’t work for any single insurance company, you’ll want to ask how they are compensated. This is an important step to protect yourself from any bias and help you make an informed decision.
Questions to Ask Before Choosing a Policy
We recommend using an online broker or an independent agent to find an insurance company that works best for you. Alternatively, you can do a home insurance quote comparison on your own by obtaining quotes from three insurance providers and looking at cost, coverage, and insurance trustworthiness.
Regardless, if you choose to do a homeowners insurance quotes comparison with or without an insurance agent or broker, here are some questions you should consider asking:
- How much coverage was I quoted for? Does it include detached structures, such as a garage or shed?
- Do I have enough insurance coverage to rebuild my home in the event it is destroyed?
- Do I live in a flood or seismic zone? How much is it to add flood or earthquake insurance?
- Do I have enough coverage to replace my personal belongings?
- How much is my deductible?
- What are the policy exclusions and limitations?
- Do I have liability coverage? If so, how much?
- How do I file a claim?
- Am I eligible for discounts?
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FAQs
Why should I compare home insurance quotes?
You should compare home insurance quotes to find coverage at the lowest prices. Rates and benefits may vary by insurance provider, so taking time to shop around may save you money in the long run.
How do I get the most accurate homeowners insurance quote?
To get the most accurate homeowners insurance quotes, you'll want to provide the most accurate, up-to-date information about your home, including its size, age, and safety features.
What factors impact home insurance rates the most?
Factors such as location, current value of the home, claims history, and level of coverage needed will impact homeowners insurance rates the most.
Are online home insurance comparison tools reliable?
Yes, online home insurance comparison tools are reliable and provide a quick way to compare multiple policies at once. However, be sure to read the fine print to understand exclusions and inclusions.
How often should I compare my homeowners insurance policy?
You should compare homeowners insurance policies at least once a year or when you experience a major life change like home renovations or if you purchase additional property.
