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.
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||Market share||2019 J.D. Power overall satisfaction (higher is better)||2019 NAIC Complaint Index (lower is better)|
|Universal Property Insurance||1%||-||6.90|
QuoteWizard connects you with licensed agents from the top home insurance companies in the U.S., making comparison shopping easy.
Home insurance companies determine your quote using many factors. The price in the quote 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 also may get more coverage for the price.
For example, a quote will have a dwelling coverage amount, which is the maximum reimbursement a home insurance company will provide if your home must be rebuilt. One company may quote you $150,000, 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.
Because homeowners insurance policies are standardized, coverage won't vary very much between companies. Although coverage doesn’t differ much, some parts of a quote can change greatly between companies. For example:
There are six coverages in a standard HO-3 homeowners insurance policy, and they each have their own coverage limit.
|Coverage||Typical coverage limit||What it covers (in a nutshell)|
|Dwelling||Cost to rebuild your home||Your home|
|Other structures||10% of dwelling||The other buildings on your property, like a garage|
|Personal property||50% of dwelling||Your belongings|
|Loss of use||20% of dwelling||Extra living expenses if you temporarily cannot remain in your home|
|Personal liability||$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|
Your dwelling, other structures and personal property coverages will also include a type of replacement, either 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 you lose your living room couch in a fire, 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, with depreciation factored in. So, if that same couch is lost in a fire and you have an ACV policy, you'll receive a substantially lower settlement that reflects the value of the used couch.
Different coverages in your policy can be RC or ACV. It's common for dwelling coverage to be RC and property coverage to be ACV.
There are a few deductibles you might see on your policy. These include a policy deductible, and also 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 can change depending on the damage.
Using a comparison website like QuoteWizard lets you get multiple quotes, empowering you to choose the policy that's right for you. As an example, we made up two imaginary 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 of pocket $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 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 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. 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.
Homeowners insurance policies usually do not cover floods or earthquakes.
The average cost of homeowners insurance in the U.S. is $1,215 a year, according to our comprehensive study of the average cost of homeowners insurance. The table below can help you ballpark how much your neighbors pay and whether you're overpaying with your current insurer.
Average US yearly
rate in 2020:
|State||Average premium||10-year rate increase|
|Note: Average rates are based on non-binding estimates provided by Quadrant Information Services. Your rates may vary. Rate increases were calculated using NAIC data.|
Our data shows homeowners insurance rates increase anywhere from $8 to $91 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, Oklahoma's tornadoes and California's wildfires 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, and 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 $1,215. 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, Standard & Poor’s Global Market Intelligence 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.