Comparing home insurance quotes

When shopping for home insurance, it is a good idea to compare quotes from several companies. What, however, should you look for in home insurance quotes? How do you go about finding the best home insurance policy for your needs? StrongInsurance experts can show you how to compare home quotes so that you can find the best homeowners policy for your specific situation.

Home insurance premiums by company

The cost of a policy is one of the first factors to consider when shopping for home insurance coverage. The average cost of a homeowners policy in the United States is $1,312 per year for $250,000 in dwelling coverage. Your homeowners insurance rates may vary depending on a number of factors, including the replacement cost of your home, your claims history, and the company you choose.

Because each company has its own rating system, obtaining homeowners insurance quotes from several providers may help you find a competitively priced policy. By market share, the companies listed below are the largest in the country. The companies in bold have average rates that are lower than the national average.

Understanding home insurance quotes

What is the definition of a homeowners insurance quote? Home insurance quotes, also known as property insurance quotes, are an estimate of what coverages and discounts will be included on a specific company's home insurance policy, as well as the cost of that coverage. Each company has its own formula for calculating your quote, which is based on your perceived level of risk. Your premium will be affected by factors such as your claims history, the amount of coverage you require, and the discounts you qualify for. A quote is only a rough estimate of your total cost. When your policy is underwritten, your premium may change.

Parts of home insurance

Although price is an important consideration when reviewing a quote, it is not the only one. Each homeowners insurance policy is a collection of various coverages. Your dwelling coverage, for example, is intended to pay for structural damage to your home, whereas your personal property coverage is intended to pay for your damaged or destroyed belongings.

Determining how much coverage you require is an important step in ensuring that a quote is appropriate for your situation. Most insurance companies will have a tool to calculate the rebuilding cost of your home, and several other coverages on your quote — other structures coverage, personal property coverage, and loss of use coverage — are typically percentages of your dwelling coverage amount. Your liability coverage should also be taken into account. You can generally purchase coverage for as little as $100,000, but you may want to increase your limits to provide more financial security.

Home insurance policy types

There are several policy types to choose from when it comes to home insurance. Understanding the differences between these policy types, which are denoted by the letters "HO" followed by a form number, may assist you in selecting the option that best meets your needs. Many insurance companies, however, only sell HO-3 and HO-5 policies.

Each policy type includes a different level of coverage. Named peril coverage only protects your home and belongings against the risks specified in the policy, such as fire, theft, and vandalism. Anything not specifically excluded is covered under open perils coverage. Financial protection from a broader range of situations is provided by open perils coverage.

HO-3 home insurance policies are the most common type of policy because they provide a good balance of coverage and cost. HO-5 policies are also fairly common, but because of their broader coverage, they tend to be more expensive. The table below depicts various home insurance policy types and the types of perils covered for each coverage.

In addition to named or open perils coverage, you may be able to select between actual cash value (ACV) and replacement cost coverage for your home, personal property, or roof. ACV coverage means that depreciation will be deducted from a claim settlement, whereas replacement cost coverage will reimburse you for the cost of replacing your damaged or destroyed property.

How much does a homeowners insurance quote cost?

Obtaining a home insurance quote is free of charge. Quotes are frequently marketed as "free," but the vast majority of home insurance companies do not charge for obtaining a quote.

When it comes to policies, the average cost of home insurance for $250,000 in dwelling coverage is $1,312. Your premium will vary depending on a variety of factors, so it is likely that your premium will differ from the average.

Information needed to get a quote

Obtaining a quote, whether online or from an agent, is simple. However, it does take some time, and you will need to provide several pieces of information in order to get the most accurate quote possible:

• Personal information: To obtain a quote, you will need to provide your name, date of birth, and possibly your Social Security number. If you share ownership of your home with a spouse, family member, or anyone else, you will also need their information.
• Home information: An insurance company will first need your address. Companies may be able to look up additional information, but you should be prepared with the year of construction of your home, the age of the roof and other home systems such as your HVAC, and details of any custom features.
• Coverage requirements: While most companies will be able to assist you in selecting coverages that are appropriate for your needs, having an estimate of your home's rebuilding cost can be useful in determining whether a company is over- or under-insuring your property. If you need or want optional coverages, such as water backup, identity theft, or contents replacement cost, knowing the cost to rebuild while getting a quote can help your quoted premium be more accurate.

How to compare quotes from home insurance companies

Even if you already have an insurance company in mind with whom you want to work, it is never a bad idea to get several quotes to see if you can save money with a different insurer. Aside from premium, there are other factors to consider, but budget is often one of the most important considerations when shopping for insurance. The following are the steps to compare home insurance quotes:

• Consider your requirements: What do you expect from a company? Do you value excellent customer service? Do you require any additional coverage? Do you want a company with local offices? Knowing what you want and need can assist you in narrowing down your options.
• Request quotes from several companies: Once you've determined what you're looking for in a company, you can request quotes from several home insurance providers who might be a good fit for you. Quotes are frequently available online or over the phone, but in some cases, you may need to visit an agency.
• Examine each quote for accuracy: Examine each quote to ensure that it is as accurate and similar as possible. Although the amount of your dwelling coverage may vary depending on the valuation tool used by each company (as well as your other structures coverage, personal property coverage, and loss of use coverage because these are percentages of your dwelling coverage), it helps to ensure that each quote is for as similar coverage levels as possible. This allows you to compare the premiums that are being offered to you.
• Consider customer service: Check out online consumer advocacy groups such as J.D. Power to see what other policyholders think about the company. Knowing that you will receive prompt, efficient, and effective service when you require it is critical.
• Examine the financial strength ratings: Finally, consider companies such as AM Best and Standard & Poor's (S&P), which assess a company's financial stability. These scores may also be displayed on the websites of insurance companies. The more financially stable an insurance carrier is, the more likely it will be able to pay out claims.

When in doubt, consulting with a licensed insurance agent can be extremely beneficial. When it comes to selecting coverages and policy features, an agent can assist you.

Frequently asked questions

What is the best home insurance company?

Because every homeowner has different insurance needs, there is no one company that is best for everyone. This is why knowing what you require from your home insurance and obtaining quotes from several companies can be so beneficial. You can then compare each company's premium, coverages, customer service, and financial strength to find the best home insurance for you.

Will a homeowners insurance quote impact my credit score?

No, obtaining a home insurance quote will not have any effect on your credit score. When you request a quote, the company will perform a "soft pull" to review your credit score. Companies require this information to provide you with an accurate quote, but it will not affect your credit score in the same way that applying for a mortgage or loan will. Purchasing a policy will have no effect on your credit score.

Can I get a home insurance quote before purchasing my new home?

You certainly can. In fact, most mortgage companies will require you to have your homeowners insurance policy in place by the closing date, so it's a good idea to start getting quotes now so you're ready. Once you've decided on a home, it's a good idea to begin the home insurance process by obtaining quotes from several insurance companies.

How much home insurance do I need?

There are several factors to consider when determining how much home insurance you require. The first is the cost per foot in your area to rebuild or repair your home. A good insurance agent, as well as an experienced construction professional, can provide you with this information.

If your home is damaged or destroyed, your dwelling coverage should be sufficient to cover the costs of rebuilding. You should also consider whether you need to purchase any additional coverages, such as water backup or identity theft. Finally, think about your liability exposure. If you frequently entertain guests or have a pool, trampoline, or swing set, you should consider increasing your liability coverage.

Methodology

StrongInsurance analyses 2021 rates for all ZIP codes and carriers in all 50 states and Washington, D.C. using Quadrant Information Services. The rates quoted are for a 40-year-old male and female driver with a clean driving record, good credit, and the following full coverage limits:

• Liability for bodily injury of $100,000 per person
• Liability for bodily injury of $300,000 per accident
• Property damage liability per accident is $50,000.
• Uninsured motorist bodily injury per person: $100,000
• Uninsured motorist bodily injury per accident: $300,000
• The collision deductible is $500.
• The comprehensive deductible is $500.

StrongInsurance used minimum coverage limits that meet each state's requirements to determine minimum coverage limits. Our typical driver owns a 2019 Toyota Camry, commutes five days a week, and drives 12,000 miles per year.

These are sample rates that should only be used for comparison.