How do I compare home insurance quotes?

To find the best home insurance, homeowners should compare quotes from at least three companies. Insurers use different formulas to measure risk, so prices can vary significantly. However, keep in mind that the lowest price isn’t always the best deal. High-quality customer service is a crucial factor, especially when you need to file a claim. 

You should also look closely at the specific details of each quote to ensure you’re comparing apples to apples. One policy might be cheaper because it offers less protection, so verifying that the coverage limits and deductibles match across your options is essential.

Why comparing home insurance quotes matters

Home insurance protects your finances if something damages your house or belongings, like a fire or storm. Whether you’re looking to cover a new house or considering renewing an existing policy, it’s worth exploring your options. Comparing quotes is the only real way to know if you’re getting the right amount of protection for a price that actually makes sense.

But chasing the lowest-cost policy shouldn’t be your only priority. If it doesn’t provide enough coverage, you could be left footing a bill for thousands of dollars in repairs later on.

What to look for when comparing home insurance quotes

Finding the right balance between the cost of the policy and the protection it offers comes down to these key factors.

• Coverage limits: These are the maximum amounts the insurer will pay to rebuild your house and replace your belongings. Check the "dwelling" and "personal property" sections of each quote. You want these limits to match the cost of rebuilding your home and the value of everything inside it.

• Premium: The price you pay every month to keep the policy active.

• Deductibles: This is what you’ll have to pay out of your own pocket in the event of a covered claim before insurance covers the rest. Choosing a lower deductible means you’ll pay more in premiums, and vice versa.

• Endorsements: These are optional add-ons that provide extra protection for specific needs, such as coverage for water backups or expensive jewelry.

• Customer service: Read customer reviews and check ratings on sites like Trustpilot to see how other homeowners feel about their experience. You’ll want to pay close attention to how the company handles claims, since this is when you’ll need its support the most.

How to compare home insurance quotes effectively

Here are a few simple steps to make gathering quotes easier. Remember, your goal is to compare apples to apples, so you’ll want to ask for a quote for the same types of coverage and policy limits each time.

Before you start

1. Estimate your home’s rebuilding cost. The amount of dwelling coverage you need depends on how much it would cost to rebuild your home after a total loss. To get a ballpark figure, multiply the square footage of your house by the average building costs in your area. Insurance companies can help you calculate your rebuild cost, but checking with a local builder can help ensure that number is realistic.

2. Take inventory of your personal property. Making a list of all your belongings and their value — and even better, organizing your receipts — can help you determine how much personal property coverage you need. In the event of a claim, this documentation will make the process much smoother, too.

3. Choose your deductible. Select an amount you could easily afford to pay at a moment’s notice. 

4. Think about risks specific to your property. Standard coverage has limitations. For instance, flood damage is excluded. If you live on a coast or in Tornado Alley, you may want to add flood insurance. Californians might benefit from earthquake insurance. Consider adding extra protections to enhance your policy.

Getting quotes

Now that you know what you want, it will be easier to ask for a quote for the same coverage types and policy amounts from each company. Here’s how to begin the quoting process:

1. Go directly to companies. With some companies, you may be able to get a quote online — or at least complete the initial steps. With others, you may need to contact them by phone.

2. Use online comparison tools. To speed up the process, some websites allow you to enter your information once and receive quotes from multiple insurers.

Common mistakes to avoid when comparing home insurance quotes

Shopping for home insurance can feel overwhelming, but knowing which mistakes to watch out for simplifies the process. Being aware of these traps early on helps you avoid costly oversights and ensures you don't pay more than necessary for the protection you actually need.

Mistake: Only considering price

Of course, the cheapest quote seems attractive, but it might also be the policy offering the least protection.

How to avoid: Make sure every quote offers the same coverage, limits, and deductibles (or as close as possible). That way, you can confidently choose the lower premium.

Mistake: Confusing market value with rebuilding cost

The rebuild cost of your home is not the same as the market value of your home (since the market value includes the land). Your dwelling coverage limit should reflect the rebuild cost.

How to avoid: Get an estimate of your rebuilding cost. An insurance company can provide you with one, but you can also hire a contractor or use an online calculator if you want an independent estimate.

Mistake: Assuming everything is covered

Standard home insurance policies do not cover everything. Damage from certain hazards (like floods and sump pump failure) is excluded, and losses for certain items (like jewelry and fine art) have caps.

How to avoid: Actually read the policies you’re comparing to see what they cover and what they don’t, so you can make sure to ask for any additional coverage you might need.

5 tips for finding the best coverage

Shopping for home insurance takes effort. But if you ever need to file a claim, you’ll appreciate having the appropriate coverage in place. Here’s how to find the best coverage for the best price: 

• Shop for quotes annually. Aim to revisit your policy and compare quotes before your coverage automatically renews each year. Your needs may have changed, and you can adjust your coverage to match. Or, you might find another company can offer you the same policy for a better price.

• Ask about discounts. Almost all companies offer discounts of some sort. Ask which you qualify for. You can get substantial savings for buying more than one policy from the same company (like home and auto), and you might qualify for savings for installing safety features like burglar alarms or leak detectors.

• Check customer satisfaction and financial strength ratings. It helps to know your insurance company can actually pay a large claim when you need it. Independent agencies like AM Best and Standard & Poor’s grade insurance companies on their financial ability to pay claims in the future. And companies like J.D. Power release annual studies ranking customer satisfaction, claims satisfaction, and digital experience satisfaction.

• Consider increasing your deductible (if you can afford it). Choosing a higher deductible can lower your premium. Just make sure you have enough savings set aside to cover your deductible if you need to file a claim.

• Think about how you want to do business. If you’d like to manage your policy online, make sure the company you choose has a website or app that makes it easy. If convenient customer service is important to you, look for 24/7 customer support. If speaking with a human face to face would be helpful, find a company with brick-and-mortar locations in your area.