You may be familiar with the social site Reddit. But if you’re not, here’s a quick intro. Reddit is an online community forum where millions of users share news, reviews, tips, and other knowledge. 

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Reddit has thousands of subreddits—user-created areas of interest where multiple threads on a similar topic can be shared and upvoted when users find a post valuable. Several subreddits exist to discuss adult life and personal finance tips. These come from a diverse group of users with real experience. Our favorites are:

  • r/personalfinance
  • r/homeowners
  • r/Insurance

We combed through thousands of posts to find the best advice for getting better coverage from your home insurance policy. Let’s dig in. 

1. Compare Home Insurance Rates from Top Companies—Including Your Car Insurance Provider

As the post describes, most large insurance companies have comparable customer service. The same goes for website usability, other technology, and claims processes. Furthermore, standard home insurance policies—HO-1, HO-2, and HO-3—are generally the same in coverage.

So while it’s important to consider certain perks, your best bet is to look for the company offering you the best rate. Many insurers offer a menu of discount programs, and notably, bundling home and auto insurance is often the most rewarding. 

Beyond bundling, membership-based discounts, home safety features, and setting a higher deductible can also win you a better rate. Don’t forget about smaller discounts like paying in full or going paperless. Small discounts add up. And in states where rates have been increasing, like California and Louisiana, saving is more important than ever. 

2. Is Home Insurance a Scam? Not When You Consider…

While you can go years without filing a claim, that doesn’t mean home insurance isn’t worth it. Sure, 10 years of home insurance premium can cost you $10,000 to $20,000 or more. But when a tornado rips through the middle of your home, you’ll be glad you’re covered. 

The truth is that it doesn’t take total catastrophic damage to make those payments worth it. Burst pipes can ruin your pristine hardwood floors. A major thunderstorm can wreak havoc on your roof. Three inches of flooding in your basement can destroy flooring and appliances and cause rot, mildew, and mold damage.

Any of these very common claims can easily exceed a decade of insurance premiums

3. Set Your Deductibles High (But Not Too High)

Homeowners get caught up on deductibles all the time, so here’s the scoop: set your deductible as high as you can reasonably afford. This helps you out in two ways. First, higher deductibles mean lower premiums. This is true for standard homeowners and specialty coverage, like flood insurance.

Second, higher deductibles provide an added incentive to avoid small claims. When the repair costs only a little more than the deductible itself, you’re more likely to pay out of pocket. While this may seem to detract from the purpose of insurance, it actually protects you from paying higher costs for necessary coverage. 

Just be sure that you have the money in an emergency fund to cover that deductible when the time comes.

4. Avoid Making Small Claims—and Keep Up on Home Maintenance

You may have sensed a theme here: home insurance is for the big problems. And that’s something a lot of homeowners misunderstand. You may think insurance is to cover all property problems all the time. But it isn’t. 

Replacing a few lost shingles is not the purpose of home insurance. Instead, it’s for getting a new roof when yours has seen major damage from a storm. Better yet, it’s for replacing your home when you experience a total loss

Filing small claims, while it may save you a few hundred bucks today, will cost you a few thousand in higher premiums. Small damages are best paid out of pocket, as painful as that may seem.

Some tips to help you avoid small claims:

  • Keep your emergency savings well funded.
  • Get multiple quotes when you need a repair—quotes are usually free.
  • Try to work with the same contractor, as you can receive discounts.
  • Stay up-to-date on home maintenance.
  • Never leave property damage untended (it can easily get worse).
  • Learn new handy skills—many repairs and maintenance tasks are novice-friendly.

What’s the threshold for a claim worth filing? A good rule of thumb is between $6,000 and $10,000, depending on your savings. 

5. Replacement Cost Value for the Win

While many insurance providers make replacement cost value (RCV) standard for the average home, this is not always the case. Why is RCV so important? Because it insures you for whatever the cost is to replace your damaged property, minus the deductible

With an actual cash value (ACV) policy, you only get paid out for the value of your property minus depreciation. That means you’re stuck covering the difference, which can be thousands. 

Keep in mind that your property needs to be in good condition to be eligible for RCV coverage. 

6. If You Didn’t Buy a Flood Policy, Don’t File a Hail Mary Claim

Since Hurricane Ida, many homeowners have been caught off guard with uninsured flood damage. Unfortunately, standard homeowners insurance never covers flooding. In fact, most natural disasters are excluded from standard plans. To get coverage, you’ll need a separate insurance policy or a special rider.

Though it may seem like it couldn’t hurt to file a claim even when you didn’t purchase the right coverage, it can. As this Reddit user pointed out, filing a claim, even when it gets denied, puts you at risk for higher insurance premiums and non-renewal.

Our advice? Seek what you can from FEMA (if applicable). Don’t forget about government loans to help you manage the high cost of repairs. When all else fails, try using a HELOC to cover costs.

7. Add an Umbrella Policy to Your Home Insurance Plan

Umbrella insurance is an additional insurance policy that covers some of the things traditional home and auto policies miss. Think of it as extra padding, especially for liability coverage. It covers injuries, property damage, some lawsuits, and personal liability situations—like the one detailed above. Umbrella policies are also inexpensive.

Even though adding more coverage may seem like a way to pay more to your insurer, think again. Because bundling insurance packages often get you the best discounts, you can end up getting discounts for auto and home (and any other insurance plan you have with the same company). You might even end up paying less for more coverage, like this Reddit user:


8. You Can’t Make a Home Insurance Claim for Previous Homeowner Damage

Buying a new house? Found property damage that the previous owner never repaired? Don’t try to claim it. 

As this Reddit user rightly points out, that’s insurance fraud. When you buy a home “as-is” (which is standard), you agree to accept any damages found. However, you can renegotiate the selling price if you have an inspection done before signing the contract. 

You can also request that the seller provide you with a year of comprehensive home warranty coverage (from a top-rated company). A home warranty will replace things like your water heater, sump pump, and furnace for a flat fee. 

Just be sure it’s a comprehensive package. If you have questions, your realtor should be able to assist you and recommend top companies in your area.

9. Insurance Agents and Insurance Brokers—Are They Worth It? It Depends

Independent agents, like the ones you’ll find at Insurify, are by far the most recommended by Reddit users. The reason is pretty simple: they’re (often) not obliged to one carrier. That means they’re more likely to give objective advice. 

But it’s not always better. Some insurers offer better incentives for the sale of their policies. This can influence some agents and/or brokers to recommend those products over cheaper ones. Plus, agents and brokers may also charge an additional fee to homeowners for their services.

Navigate this obstacle by looking for reviews and asking agents about their compensation policies. You can also use a tool like Insurify to see real rates for yourself.

10. The Best Homeowners Insurance Companies, According to Reddit Users

The best home insurance company is going to depend on the user, i.e., you. Every homeowner has their own unique set of needs and preferences, and this prevents companies from being one-size-fits-all. For most homeowners, the right company offers a comparatively low rate with acceptable customer service. The company must also be in great financial standing.  

With that being said, Reddit users time and again recommend their favorite insurers to new homeowners looking for a lead. The most-mentioned companies we found include:

  • State Farm
  • USAA
  • Amica
  • Allstate
  • Nationwide
  • Farmers
  • GEICO
  • Progressive
  • Liberty Mutual

Just remember:

Frequently Asked Questions

How do I pick the right home insurance?

For most homeowners, the broad form (HO-3) offers the best coverage. This is an open perils policy, meaning anything not listed as an exclusion will be covered—up to coverage limits and minus the deductible. The broad form is a standard policy, so purchase it from the home insurance company that offers you the best rate. When choosing between similarly priced policies, look for conveniences like online claims processes and 24/7 customer service. 

Do I have to buy home insurance? What if I choose no home insurance?

If you have a mortgage, your mortgage company will require that you carry enough coverage to protect your home. Your home, after all, acts as collateral for your loan—if you default on your mortgage, your lender recoups some of its losses through the foreclosure process.  But even when you don’t have a mortgage, home insurance is a smart idea. One catastrophic event can destroy what’s likely your biggest asset. Home insurance protects you financially, physically, and emotionally when the worst occurs.

How much should homeowners insurance cost per month?

The cost of home insurance depends on where you live, the risks your home faces, the age of your home, its construction materials, and its replacement value. In other words, the cost of home insurance is variable. Keeping this in mind, the average homeowner pays between $1,200 and $1,500 annually—$100 to $125 per month. But it could be more expensive for people in high-risk areas or with high-value homes. And it could be much less for people with modest homes in areas of low risk. 

Do I need home insurance if I’m renting out my condo?

Yes. You need dwelling coverage and personal liability as a landlord. However, unless you’re keeping personal property in your condo, you can forgo contents coverage. We do recommend encouraging or even requiring that whoever rents from you carry renters insurance.

Wrapping Up

In addition to these well-reviewed tips, we’d like to add some cost-saving advice:

  • When your credit score goes up, compare your home insurance rates. Why? Because in most states your credit score can affect your rate. 
  • Hire an independent insurance adjuster if you feel low-balled by the adjuster assigned to your claim. 
  • Compare quotes from insurers at least every six months to ensure you’re always getting the best deal.  

Don’t forget that you can search, compare, and buy home insurance with the Insurify comparison tool. One free and confidential form lets you see what the professionals see, and it only takes a few minutes. Try it now!

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Updated September 15, 2021

J.J. Starr is a health and finance copywriter who enjoys helping readers find the information they need. In addition to her background in banking and financial advising, she is also a poet with an MFA from New York University. She lives in Amherst, Massachusetts. You can learn more at jjstarrwrites.com.