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Finding the right homeowners insurance company for you can be overwhelming. We’re here to provide you with the practical tools and insights you need to make an informed comparison between homeowners insurance companies and quotes. QuoteWizard connects you with licensed agents from the top homeowners insurance companies in the U.S., making comparison shopping easy.
Home insurance rates and quotes at a glance
A home insurance quote provides an estimate of how much you would pay for home insurance from a particular company. Insurance companies will look at many factors when giving a quote. Getting multiple quotes from insurers allows you the chance to compare rates and coverages.
You can get a home insurance quote using an online tool, an insurance agent from a provider or an independent insurance agent who can provide quotes from multiple companies. When getting a quote, home insurance companies may ask how old your house is, when you bought your home, features of your home, your claims and credit history, where your home is located, and what home insurance limits you need. These questions can affect your home insurance rate. Other factors include:
You will also need to know how much dwelling and personal property coverage you need. To determine how much dwelling coverage you need, you have to calculate your home's replacement cost. Your home's replacement cost is the amount of money needed to rebuild your home it to its current specifications and standards if it is completely damaged. Although home insurance companies can approximate the replacement cost for you, we recommend verifying their estimate.
Your personal property coverage limit is typically 50% of your dwelling coverage. However, you can lower or increase the amount of coverage based on the value of your belongings. We recommend creating an inventory to determine how much personal property coverage you need.
There are several different types of home insurance policies. Policies for owner-occupied homes range from the most basic (HO-1), to standard (HO-2 and HO-3), to comprehensive (HO-5).
HO-1 coverage is the most basic policy. An HO-1 policy only covers damages that are caused by 10 perils stated in the policy. HO-1 policies only cover the structure of your home.
HO-2 policies cover the same perils as HO-1 policies as well as some additional perils. These include falling objects and damage due to the weight of snow or ice. HO-2 policies also cover personal property.
HO-3 policies are the most common type of home insurance policy. HO-3 policies cover all perils except ones that are clearly excluded in your policy for the structure of your home, which means they offer a wide range of coverage. HO-3 policies also include personal property and personal liability coverage. There are six coverages in a standard HO-3 homeowners insurance policy, and they each have their own coverage limit.
|Coverage||Typical coverage amount||What it covers|
|Cost to rebuild your home||Your home|
|10% of dwelling||The other structures on your property, like a garage|
|50% of dwelling||Your belongings|
Loss of use
|20% of dwelling||Extra living expenses if you temporarily cannot remain in your home|
|$100,000||Legal and settlement costs if you are sued and found liable|
Medical payments to others
|$5,000||Medical expenses if a guest is injured on your property|
HO-5 policies provide the most coverage. They offer all the coverages you would find in a HO-3 policy and additional coverage. HO-3 policies typically pay out claims at actual cash value for your belongings, while HO-5 policies cover them at replacement cost. Replacement cost policies do not take depreciation into account when paying out claims.
When receiving a home insurance quote, the price you receive is the result of multiple coverage limits and policy details. That means you should consider more than the final price on the quote. One company may have higher monthly premiums, but you may also get more coverage for the price. The details below can help you get a sense of what to expect when comparing homeowners insurance rates.
1. Consider coverage limits
When comparing multiple quotes, you should look at coverage limits and additional coverages or endorsements being offered. For example, one company may quote you $150,000 for dwelling coverage, while another quotes you $180,000. When comparing the final quote price between these two companies, remember that one provides more dwelling coverage than the other and that home insurance rates can vary significantly by dwelling coverage. Below are average annual rates for dwelling coverage amounts ranging from $200,000 to $500,000:
|Dwelling coverage amount||Average annual premium|
You can also customize your policy by adding optional coverages. Insurers can offer different types of optional coverages. Optional coverages can include higher limits for jewelry and more, sump pump and water backup coverage, and identity fraud. We recommend looking at the different types of optional coverages companies offer and comparing them based on your needs.
2. Consider deductible amounts
You'll also want to compare deductible amounts. There are a few deductibles you might see on your policy. These include a policy deductible and special deductibles, like a wind, hail or hurricane deductible, depending on where you live. That means the amount you have to pay out of pocket may change depending on the peril that causes damage.
3. Consider how your insurer will reimburse you for claims
You'll want to compare how the policies pay out claims. Damages to the structure of your home and personal property can be reimbursed either based on their replacement cost (RC) or actual cash value (ACV).
Replacement cost policies reimburse you based on the cost to completely replace a damaged item. For example, if a fire destroys your living room couch, an RC policy will reimburse you enough money to purchase a new couch.
Actual cash value policies reimburse you based on the value of the item at the time of loss, factoring in depreciation. So, if that same couch is lost in a fire and you have an ACV policy, you may receive a substantially lower settlement that reflects the value of the used couch.
Different coverages in your policy may be RC or ACV. It's common for dwelling coverage to be RC and property coverage to be ACV.
4. Consider discounts
Insurance companies can offer different types of discounts or savings that you may qualify for. A common discount that insurers offer is a bundling discount, which can save you a lot of money. We recommend comparing discounts in order to get a better idea of what you will pay for home insurance.
When comparing quotes from different insurance companies, you’ll have multiple components to compare. As an example, we made up two sample policies, which are described in part below.
|Policy A||Policy B|
|Personal liability coverage||$100,000||$300,000|
|Property replacement policy||ACV||RC|
The two policies have different monthly premiums - Policy A is cheaper than Policy B. But how does the coverage compare?
Policy B provides more liability protection than Policy A. That means if you reach your liability limit of $100,000 with Policy A, you could be responsible for any additional out-of-pocket costs. Similarly, Policy B's dwelling coverage limit is higher, meaning your home's structure is protected for a larger amount.
There's also the wind deductible to consider: you could be out $1,000 for Policy A, but only $250 for Policy B after a loss due to wind. This difference could easily negate any policy savings you got by going with Policy A.
Lastly, consider the property replacement type. For Policy A, you'll receive actual cash value after a loss, meaning you'll have to pay some amount out of pocket to completely replace the item. The replacement cost with Policy B, on the other hand, means your insurance company will reimburse you the full cost to replace your belongings after a loss.
The final cost of your homeowners insurance policy doesn't matter if you aren't receiving the coverage you need. Even if one company has lower monthly premiums, what if it doesn't fully cover you after a loss? That's why we recommend comparing price and the quote coverage limits.
Asking the right questions can help you better understand your quote options and make an informed decision about which home insurance policy to get. But it's not always clear what questions to ask, so here are a few questions to ask yourself and the insurance companies when you're comparing quotes.
Whether you want to switch companies to save money, purchase homeowners insurance for your first house or are just window shopping, comparing companies is a great way to get your best rates and coverage. We know that companies can begin looking the same the more quotes you get. The table below summarizes some high-level differences.
|Company||AM Best financial strength rating*||2021 J.D. Power overall satisfaction (out of 1,000)**||2021 NAIC Complaint Index (lower is better)***|
|*Financial strength rating from AM Best. **J.D. Power ratings from 2021 U.S. Home Insurance Study. ***Complaint Index from NAIC.|
Although your home insurance rates depend on many factors, you can get affordable coverage for your home by comparing rates from different insurance companies. Home insurance companies may look at different factors or weigh a certain factor differently from other companies when determining rates. We reviewed thousands of rates from several home insurance companies and compiled average rates for some of the largest home insurance companies.
|Company||Average annual premium|
Allstate: Allstate is one of the best-known insurance companies. It's also one of the largest, with thousands of agents. Allstate offers affordable rates, numerous discounts and many optional coverages. On the flip side, it has an average customer satisfaction score on J.D. Power's 2021 U.S. Home Insurance Study and more complaints than expected for a company of its size.
QuoteWizard rating: 4 out of 5
USAA: USAA has affordable rates and top-notch customer service, but only military members, veterans and their families can buy coverage. USAA is a great option for home insurance if you qualify.
QuoteWizard rating: 4.7 out of 5
Nationwide: Nationwide's home insurance rates are average compared to its competitors. Still, it offers several discounts to help lower the cost of a policy. Nationwide has below-average customer service scores on J.D. Power's 2021 U.S. Home Insurance Study, but it also receives fewer complaints than most other insurers, as noted by the NAIC.
QuoteWizard rating: 4.2 out of 5
State Farm: State Farm is one of the biggest home insurance companies around, and its many customers give it high marks for service. Its rates are slightly higher than the national average, though. We recommend State Farm if you can take advantage of its bundling discount. With it, you could save up to $1,127 on your auto and home insurance policies.
QuoteWizard rating: 4.1 out of 5
American Family: American Family provides great customer service and receives few complaints. It also offers a variety of optional coverages. However, American Family's home insurance rates are higher than average, according to our research.
QuoteWizard rating: 3.6 out of 5
Farmers: Farmers home insurance has a higher average premium compared to competitors. It also has a below-average customer satisfaction score on J.D. Power's 2021 U.S. Home Insurance Study. However, Farmers home insurance offers coverages that are less common. If you want to "go green" Farmers provides extended coverage of up to $25,000 if the cost of replacing materials and appliances with eco-friendly materials is more expensive.
QuoteWizard rating: 3.2 out of 5
Travelers: Travelers home insurance has an average annual premium above the national average and a below-average customer satisfaction score on J.D. Power's 2021 U.S. Home Insurance Study. However, Travelers offers many optional coverages for home insurance, such as Special Personal Property Coverage, which provides more protection for your possessions in the event of a covered loss. We recommend Travelers if you're looking for a wide range of additional coverage options.
QuoteWizard rating: 4.1 out of 5
Flood damage is not included in a standard home insurance policy, but it can be purchased separately through the National Flood Insurance Program. In the event of a flood, flood insurance covers your house and belongings. If you live in a high-risk flood zone, your mortgage lender may require you to have flood insurance.
If your home is damaged by an earthquake, you would need a separate policy to cover your home and belongings. Whether or not you need an earthquake insurance policy depends on if your area is prone to earthquakes.
Home insurance companies look at the risk profile of your state when calculating your premium. The table below can help you estimate how much your neighbors pay and whether you're overpaying with your current insurer.
Average U.S. yearly
rate in 2022:
|State||Average annual premium||Average monthly premium|
|District of Columbia||$1,148||$96|
Our data shows that homeowners insurance rates increase anywhere from $4 to $470 a year. If your rates recently increased more than your state average, it may be time to consider switching companies.
Homeowners insurance covers many natural disasters, meaning states at higher risk for natural disasters have higher rates. So, Florida's hurricanes and Oklahoma's tornadoes contribute to their expensive premiums.
It's possible that you can find cheaper coverage than you currently have with another carrier. That's why even if you are happy with your current home insurance company, shopping around can't hurt.
Premiums vary depending on your state, city, and even your street. Find out how much home insurance costs in your neck of the woods, and what you can do to save money.
Compare homeowners insurance rates for:See All States
Q: Is homeowners insurance required?
A: Home insurance is not required by law. If you have a mortgage, however, lenders can require insurance as a condition of your loan.
Q: How do I compare homeowners insurance quotes?
A: Comparing home insurance quotes is about more than price because coverage can vary between companies. Our guide can walk you through the process of getting multiple quotes so you can find the best rates and coverage for you.
Q: What does home insurance cover?
A: Home insurance covers your home and belongings. It also provides valuable liability coverage, among other protections.
Q: How much does home insurance cost?
A: Our national study found that the average cost of homeowners insurance is $1,754 a year. Check out our state averages to see where your state ranks.
Our in-house homeowners insurance experts use data sources including the U.S. Census Bureau, FEMA, the U.S. Department of Veterans Affairs and various state insurance regulation offices.
This guide on comparing homeowners insurance quotes is the product of decades of combined experience in the insurance industry and represents what QuoteWizard deems to be the most effective way to purchase the best home insurance for you and get your best rates.
QuoteWizard rated insurance companies based on their cost, discounts, coverages, financial strength, J.D. Power score, NAIC Complaint Index, and website experience. We used a weighted rating for each of these categories and scored them out of five.
Average rates were compiled from rates in all 50 states. The following coverages were used: