Compare Home Insurance Quotes (May 2024)

For most people, their home is their largest asset, and replacing it on their own would be nearly impossible. That’s where homeowners insurance comes in. Home insurance coverage protects homeowners from the financial risk of loss or damage to their home in the event of a natural disaster, fire, or other hazards.

However, insuring your home does add to the cost of homeownership, and the price can be considerable. The average price of home insurance will increase by 6% in 2024, placing rates at $2,522 by the end of the year, Insurify data analysts predict. And home insurance rates may continue rising. That’s why it’s so important to compare home insurance policies from several insurers to find the best coverage for you.

Here’s what you need to know about this vital insurance.

How to compare home insurance quotes

Comparing quotes is the best way to find the optimal policy to match your needs. Follow these steps to begin effectively comparing quotes for yourself.

1. Decide how much coverage you need

Coverage limits may seem ambiguous at first. That’s why it helps to drill down to determine your exact coverage needs.

Start by understanding the value of your home and how much it would cost to rebuild it. Don’t forget about any other structures that may be on your property, like a shed or garage. Then, focus on your personal belongings and assets. How much would it cost to replace the items in your home?

Average replacement costs have risen a cumulative 45% since 2020, according to a recent analysis from the Insurance Information Institute (Triple-I). That’s three times the rate of inflation during the same period. Escalating costs of construction materials and labor drove the increase, according to Triple-I.

Finally, consider coverage types. Replacement cost policies pay to replace your lost or damaged items at home with the exact same materials. But these policies are more expensive. You may also not be able to get a replacement cost policy if you have an older home, because replacing such materials may be impossible.

Actual cash value policies, on the other hand, provide coverage but take depreciation into account. These policies are more affordable, but it means you won’t receive as much in compensation as you would with a replacement cost policy because of the depreciation.

Once you’ve cataloged all your valuables and your home, it’s time to add it all together into a total amount. Calculating current replacement cost is a complex process, so it’s a good idea to work with your insurance agent to determine appropriate coverage levels for your policy.

2. Compare home insurance quotes

Comparing quotes is the most effective way to find the right policy for you at an affordable price. A price-comparison platform allows you to enter a small amount of information specific to you and then compare quotes from several insurers all in one place.

Compare quotes from at least three to five different insurers, and remember the best policy for you may not always be the cheapest one.

3. Find discounts

Different insurers offer a wide array of discount opportunities, including those for bundling, being claims-free, loyalty, making home improvements, and employing safety features in your home.

Some insurers list available discounts on their websites, but others don’t. Do your research, and remember to always ask your prospective insurer or agent what home insurance discounts you may qualify for before you accept the policy. You may qualify for a discount you didn’t know existed.

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4. Review each home insurance quote

Once you collect quotes, it’s time to review them against each other and individually. Price will naturally be a focal point here, but you should also review other things, including the coverage limits and deductible. Pay special attention to which perils your policy covers, and look for any instances where your coverage may not pay out as you would expect.

5. Take out a home insurance policy

If you’ve found a policy that appeals to you through a price-comparison platform, you can contact an agent or the insurer and express your interest in moving forward. This is also a good time to iron out any final questions you have and ask again about discount and bundling opportunities.

The insurer should also be able to help you understand whether the policy you’ve selected is appropriate for your home, where you live, and your needs.

Compare home insurance rates by company

Average home insurance rates will rise by 6% in 2024, according to Insurify data. Inflation, natural disasters, and other factors are driving marketwide increases.

However, many factors unique to your home also affect your home insurance prices, including the age of your home, construction materials, its location, replacement cost, and any home improvements you’ve made.

The table below outlines companies offering the most affordable home insurance rates and the average annual cost of home insurance for a home with a $300,000 replacement cost value.

Compare the best home insurance companies

Here, you can see how some of the top insurers in the nation compare against one another. The listed average annual costs are based on a policy with a $300,000 replacement cost limit, unless otherwise noted.

COUNTRY Financial: Best for customization

USAA: Best for military members

Allstate: Best for optional coverages

Shelter Insurance: Best for discounts

Chubb: Best for high-value homes

What home insurance covers

The insurance industry separates homeowners insurance into six individual coverages, labeled with the letters A through F:

• Coverage A – Dwelling coverage: Commonly referred to as replacement cost coverage, this pays for damage to the structure of your home.

• Coverage B – Other structures: This protects you against loss to unattached structures on your property, such as a detached garage, swimming pool, tool shed, or gazebo.

• Coverage C – Personal property: This coverage pays for personal belongings in the home that are affected by the loss, including furniture, appliances, clothing, and electronics. Generally, Coverage C has a lower limit for very valuable items, such as jewelry, firearms, antiques, furs, and the like.

• Coverage D – Loss of use: If your home is uninhabitable or parts of the home are unusable after the damage or loss, this coverage will help pay for your additional living expenses from living somewhere else while you rebuild. This typically includes temporary lodging, restaurant meals, moving expenses, and even the additional cost of your commute to work.

• Coverage E – Personal liability: This aspect of homeowners insurance will provide coverage if you or another resident of your home are legally responsible for an injury to someone else or property damage.

• Coverage F – Medical payments to others: If someone is accidentally injured on your property, this type of coverage will pay for their medical expenses.

In general, you should expect a standard homeowners insurance policy to offer all six types of coverage. However, the level of coverage for each and the amount you can expect your insurer to pay in the event of a claim will vary from policy to policy.

Why it’s important to have home insurance

Even though homeowners insurance is not legally required, it’s likely that your mortgage lender won’t allow you to take out a mortgage without a policy in place. That’s because your lender wants to protect its financial interest in your home. And even if you’ve completely paid off your home, it’s still a good idea to carry homeowners insurance for the financial protection it provides.

That’s because your homeowners insurance helps pay for loss or damage if something unexpected happens. For example, your insurance coverage can protect you in the event of these potential problems:

• Fire: Even a small fire can cause extensive damage. Fire damage restoration costs an average of $4.70 per square foot in the United States, according to National Catastrophe Restoration Inc. At that rate, the restoration of a 2,500-square-foot home would cost a total of $11,750. However, fire damage restoration costs can vary depending on the home’s location, the level of damage, and the availability of labor and materials. This cost also doesn’t cover your temporary living expenses if you have to vacate the property during repairs.

• Burglary: The FBI estimates that the average value of personal property stolen in a single burglary was $2,661 as of 2019. In addition, 55.7% of burglaries involved forced entry, which could mean repairing damage to your home’s structure in the aftermath of a burglary.

• Injury to a guest: If you or a member of your household is responsible for injuring someone else or damaging their property, you may have to pay their medical bills or pay to replace or repair their property. The injured party may also be able to sue you.

Homeowners insurance can provide coverage for all these situations. It will cover the cost of repairing your home after a fire or other covered disaster and help you pay your temporary living expenses while the home is being repaired. It will also help you replace items that were stolen or damaged during a burglary. And it will protect you and pay damages in the event of an accidental injury to someone else on your property.

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Homeowners insurance discounts

Homeowners can take advantage of several discounts to reduce their premium costs. Some available discounts include:

Policy discounts

• Multi-policy discounts offer savings on all your insurance policies if you bundle multiple policies, such as home and auto, with the same insurer.

• Loyalty discounts can offer you savings if you stick with the same insurer for several years.

• A pay-in-full discount will give you a price break if you pay your premium in an annual lump sum rather than monthly. If you have a mortgage, your lender will require you to have an escrow account from which the mortgage company will pay your annual insurance premium.

Identity-based discounts

• A married or widowed discount gives you a discounted rate if you’ve tied the knot, or if your spouse has passed away.

• A mature homeowners discount rewards the fact that retired homeowners are more likely to be at home during the day, meaning they’re less likely to be burglarized.

• Homeowners association discounts provide premium discounts to members of a homeowners association (HOA) since such homeowners are generally subject to high home maintenance standards.

Safety- and security-based discounts

• Monitored burglar system discounts help homeowners who install a burglar alarm system lower their rates.

• Monitored fire alarm system discounts reward homeowners who have up-to-date smoke alarm systems or other fire alarm systems in their homes.

• An impact-resistant roof discount is intended to reward homeowners who live in heavily forested areas or in areas with a high risk of roof damage from windstorms and hail, and who maintain an impact-resistant roof.

• Home improvement discounts may make you eligible for savings if you’ve upgraded some aspects of your home. Many states mandate discounts for risk-mitigation measures.

• Gated community discounts lower rates for homeowners in a gated community, as they’re likely to face fewer safety threats.

• A new-home discount is a benefit for homeowners who buy a new home that’s 100% up to local building codes.

• Non-smoker discounts reward people who don’t smoke. Smoking is one of the leading causes of house fires, so insurers offer a discount to nonsmoking policyholders.

Compare home insurance quotes by state

Home insurance quotes can vary widely based on what state you live in and even what ZIP code. Here, you can see a collection of average home insurance rates for a policy with a $300,000 dwelling limit in each state.

Factors that affect your home insurance rates

Several factors can affect your home insurance rates. The most common variables include:

• Location: Different locations may have higher or lower risk factors for various types of perils.

• Construction type: What your home is built of (wood vs. stone) and how it’s built (flat vs. slope roof) can affect what damage you’re likely to experience.

• Replacement cost: If your home’s construction incorporates more expensive building materials, it will cost more to replace or rebuild your home.

• Liability coverage: The amount of liability coverage you carry can affect your rates. Additionally, if you have additional risk factors for personal liability, such as an aggressive dog or a swimming pool, that could increase your premium costs. An umbrella policy can provide additional liability protection.

• Dwelling coverage: The amount of coverage you carry on your dwelling has a direct effect on your rates. Your dwelling coverage limit should be sufficient to cover the replacement cost of your home at current prices for construction materials and labor in your area.

• Credit history: The insurance industry considers policyholders with negative credit histories to have a higher risk of making claims, so some insurers will charge more to these policyholders in states where insurers are allowed to consider credit.

• Number of claims: Making no claims for several consecutive years can help lower your premiums.

• Deductible amount: The deductible you set will help determine your rates. A higher deductible will lead to lower premiums and vice versa. If you live in an area with a high risk of windstorms, your policy may have a separate deductible for named tropical systems.

Homeowners insurance FAQs

Methodology

To evaluate home insurance companies, Insurify data scientists and the editorial team analyze multiple factors that reflect a company’s quality, reliability, and financial health. We consider industry ratings and information from sources like AM Best, Standard & Poor’s, Moody’s, Fitch, and J.D. Power. We evaluate customer service and satisfaction data, customer reviews, NAIC complaint indexes, claims payout rates, company reputation, and proprietary quoting data.