Gather quotes with equal footing in coverage types and limits to ensure you're getting the most coverage at the best rate with a trustworthy provider.
Your home is probably your most valuable asset, so you want to ensure you have sufficient insurance coverage. Some homeowners might make the mistake of choosing the least-expensive option without knowing what their policy entails. As a result, their home may be underinsured.
While more coverage often means higher premiums, you can still get the best rate on your home insurance by shopping around and comparing quotes.
A homeowners insurance quote estimates how much you'll pay in premiums. Nowadays, you can get a quote online in just a few minutes. Alternatively, you can speak with an insurance agent who can identify additional programs or discounts you may be eligible for. They can also help you understand all your coverage options so you can make the best choice based on your specific needs.
Another way to gather quotes is by using an insurance comparison website to generate a list of offerings from several different providers. While this expedites the comparison process, doing the extra work and digging deeper by obtaining quotes directly from the insurance companies can help you better understand what goes into the quote for the policy you're considering.
Having you and your home's information will make the quote gathering and comparison process quicker. Here are some things you'll need to get the most accurate quote.
Once you have your information on hand, you can proceed to obtain quotes and compare them.
"Customers should look for a carrier that offers extensive product and service offerings to meet their unique risk management needs," says Carolyn Boris, VP and product development manager at the global insurance provider Chubb. "They should also look for an insurer that has superior financial strength and a reputation and expertise for excellent claims handling."
When comparing quotes, it is essential that you're getting the right type and right amount of coverage for your needs. Adequate coverage is equally, if not even more important than price. Talking to an insurance agent can help consumers make the most informed decision when it comes to having sufficient coverage at the best price, says Boris.
Homeowners insurance policies are made up of different coverage types that vary based on a homeowner's unique situation. Assessing your specific needs is key to obtaining the right quote.
Coverage | Included with homeowners insurance? |
Dwelling/Structure | Yes |
Personal liability | Yes |
Personal belongings | Yes |
Loss of Use (additional living expenses) | Yes |
High-end electronics/special jewelry | Limited, requires add-on* |
Equipment breakdown | Yes |
Electrical outage | Yes* |
Service lines | Yes* |
Cyber liability | Yes* |
Water damage | Yes |
Flood | No** |
Wind or hail | Yes, but not high winds*** |
Earthquake | No* |
Pets | Yes* |
* Available as add-on coverage if not part of policy
** Available through the National Flood Insurance Program and approved insurers
*** Windstorm rider may be required in hurricane or tornado areas
There are several insurance policies to choose from to fit your individual needs. The more comprehensive a policy is, the more expensive your quote will be. According to the III, the most popular policy is the HO-3. This coverage protects you against loss related to your dwelling, personal belongings, and personal liability claims, including the 16 named perils. Below are the types of policies insurance companies offer:
Policy | Dwelling | Liability | Belongings | Peril type |
HO-1: Basic* | Yes | No | No | Named |
HO-2: Broad* | Yes | No | Yes | Named |
Yes | Yes | Yes | Open/named | |
HO-4: Renters | No | Yes | Yes | Named |
HO-5: Comprehensive** | Yes | Yes | Yes | Open |
HO-6:Condo/Co-op | Yes*** | Yes | Yes | Named |
HO-7: Mobile Homes | Yes | Yes | Yes | Open/named |
HO-8: Older homes | Yes | Yes | Yes | Named |
Townhomes can be HO-3 or HO-6.
* Typically not considered sufficient coverage by lenders
** Typically for brand-new homes only
*** Covered under condo association's master policy
Your quotes will vary based on your unique situation. However, it is worth comparing them to your state average and average for your home's value. The national average for annual homeowners insurance premiums in the US is $1,272, according to S&P Global Market Intelligence.
The state you live in will affect your homeowners insurance premiums. If your state is more prone to natural disasters, you could see higher premiums. Here are the average annual homeowners premiums by state:
State | Average Annual Premium |
Alabama | $1,116 |
Alaska | $1,002 |
Arizona | $966 |
Arkansas | $1,091 |
California | $966 |
Colorado | $994 |
Connecticut | $1,058 |
Delaware | $1,172 |
District of Columbia | $1,047 |
Florida | $1,117 |
Georgia | $1,137 |
Hawaii | $977 |
Idaho | $966 |
Illinois | $924 |
Indiana | $906 |
Iowa | $918 |
Kansas | $908 |
Kentucky | $1,106 |
Louisiana | $1,108 |
Maine | $989 |
Maryland | $1,212 |
Massachusetts | $1,031 |
Michigan | $919 |
Minnesota | $951 |
Mississippi | $1,099 |
Missouri | $897 |
Montana | $948 |
Nebraska | $907 |
Nevada | $933 |
New Hampshire | $1,049 |
New Jersey | $1,052 |
New Mexico | $949 |
New York | $952 |
North Carolina | $1,118 |
North Dakota | $906 |
Ohio | $895 |
Oklahoma | $1,114 |
Oregon | $950 |
Pennsylvania | $1,003 |
Rhode Island | $982 |
South Carolina | $1,126 |
South Dakota | $898 |
Tennessee | $1,118 |
Texas | $1,140 |
Utah | $1,025 |
Vermont | $1,004 |
Virginia | $1,181 |
Washington | $986 |
West Virginia | $1,101 |
Wisconsin | $903 |
Wyoming | $966 |
Source: S&P Global Market Intelligence
Your dwelling's cost and the amount it would require to replace your home will also affect your quote. Generally, the more expensive your home, the higher your quote will be. Below are the homeowners insurance costs by home value in the US according to the Homeowners Insurance Report by the National Association of Insurance Commissioners (NAIC):
Estimated Home Value | Average annual premiums for an HO-3 Policy |
$49,999 and under | $645 |
$50,000 to $74,999 | $748 |
$75,000 to $99,999 | $826 |
$100,000 to $124,999 | $888 |
$125,000 to $149,999 | $937 |
$150,000 to $174,999 | $981 |
$175,000 to $199,999 | $1,018 |
$200,000 to $299,999 | $1,114 |
$300,000 to $399,999 | $1,272 |
$400,000 to $499,999 | $1,482 |
$500,000 and above | $2,148 |
In states where permitted, home insurance companies may look at credit-based insurance scores to determine your likelihood of filing a claim, according to Experian. This gives companies insight into your financial history. The higher your score, the better your rates will be.
Insurance carriers will typically evaluate a consumer's credit score as part of the underwriting process, but this should not impact one's credit score, says Boris. Instead of a hard inquiry, which will likely lower your credit score, insurance providers will perform a soft inquiry. These generally won't have a negative impact on your credit score when shopping for coverage.
Ensure that you know what's going into your home insurance quote, and that you are looking at companies with equal coverage types and values so you can preform an apples-to-apples comparison. If you are looking for a place to start, check out Insider's best homeowners insurance guide for our top picks of home insurance companies.