1. Decide how much coverage you need
Most standard homeowner insurance policies provide four types of coverage:
- The structure of your home
- Personal belongings
- Liability protection
- Additional living expenses (also known as loss of use coverage)
When it comes to the structure of your home, a standard homeowners insurance policy will cover disasters such as fire, hail, lightning, and explosions. Most standard policies won’t cover flooding or earthquakes. If you live in an area where your risk of these events occurring is high, consider getting additional insurance.
Make sure you have enough insurance to cover the costs of completely rebuilding your home. Some policies may limit your coverage amount to the cost of your mortgage.
To determine how much you need to cover your personal belongings, you can take an inventory of your personal possessions. You’ll then need to consider the following policy types:
- Actual cash value: What your possessions are currently worth (taking depreciation into account)
- Replacement cost: The cost to purchase new replacement possessions
In this table, you’ll find a deeper explanation of the coverage types you can have on your homeowners policy.
Coverage Type | Amount Covered | What’s Covered |
|---|---|---|
| Dwelling coverage | Varies between companies | Structure of your home |
| Other structures coverage | Varies between companies | Garages, tool shed, gazebo |
| Personal property coverage | 50%–70% of the amount of insurance on the structure of your home; generally covers up to $500 per item | Furniture, clothing, sports equipment, and other personal itemsTrees, plants, and shrubs are also covered |
| Personal liability coverage | Typically starts at $100,000; recommended minimum of $300,000–$500,000 | Lawsuits for bodily injury, property damage caused by policyholders or family members to other peopleDamaged caused by pets |
| Medical payments coverage | Typically $1,000–$5,000 | Bodily injury suffered by guests in your home, regardless of whether you’re liable |
| Loss of use coverage | Varies between companies | Hotel bills, meals, and other living expenses |
2. Choose a deductible amount
A homeowners insurance deductible is the amount of money you have to pay out of pocket before your insurance company takes over. Deductibles vary by insurer and the plan you choose. Generally, the larger your deductible, the lower your insurance rate.[4]
A deductible can be calculated as a flat-dollar amount or a percentage of the total amount of your policy. For example, if you have a flat-rate deductible of $500 and a claim worth $10,000, your insurer will pay $9,500 after you pay $500.
Percentage deductibles work a bit differently. For example: Say you have a $200,000 home insurance policy and a 2% deductible. You’d pay a deductible of $4,000 (or 2% of $200,000) before your insurance kicks in. So, if you’ve submitted a $50,000 claim, your insurance would cover $46,000 after you pay the 2% deductible.
3. Gather details about your residence
When applying for home insurance, the insurer will likely ask you some of the following questions to prepare a quote:
- What year was your house built?
- Who lives in your house?
- Do you have pets?
- Do you run a business out of your house?
- What is the square footage of your home?
- What is the type and age of your roof?
- What is the style of your home?
- Do you have a security system or any other safety devices?
- Have there been any previous claims on the house?
To determine the amount of coverage you need, you can calculate factors such as how much it would cost to rebuild your home. Variables that can affect the cost of rebuilding include:
- Materials used to construct the walls of your home (brick vs. veneer)
- Style of your home (ranch, colonial, etc.)
- Number of rooms
- Type of roof and materials used
- Any other structures on the property (garage, shed)
- Any special features (fireplaces, arched windows, swimming pool)
- If you’ve made improvements or done renovations (added a bathroom, renovated kitchen)
4. Compare quotes from home insurance companies
Insurers base the cost of home insurance on factors such as where you live, natural disasters in your area, coverage amount, the condition of your roof, how close you live to a fire station, your claims history, and even your credit history in most states.
But the cost of home insurance varies widely between companies. Comparing home insurance quotes is the best way to get the coverage you need and can help you save hundreds of dollars per year. When comparing quotes from different insurers, ask for the same coverages and limits.
Homeowners have a few options to get home insurance quotes:
- Use an online comparison platform. An online comparison tool, like Insurify, can help you compare quotes from many different insurers at once. Some platforms also help you sign up for a new policy after you choose an insurer.
- Talk to an insurance agent. Consider using an agent if you want to speak to a person about the best coverage for your needs. Many agents represent more than one insurer, so they can help you compare quotes from different companies.
- Reach out directly to insurers. Compare quotes from different insurers by getting estimates from a handful of insurers. You can generally speak to an agent, call the company, or visit an insurer’s website for a quote.
5. Buy your home insurance policy
Once you’ve chosen the insurance policy that’s right for you, it’s time to close the deal. Make sure you read and understand the details of your policy.
Your policy document will contain coverage details for your dwelling, other structures, personal property, and liability insurance. It will also include information such as your:
- Policy number: The number you use if you need to file a claim
- Policy period: The start and end date of your policy, which is typically one year
- Coverage limits: How much coverage you have for each type (dwelling, other structures, personal property, and liability)
- Deductible: The amount you have to pay out of pocket before your insurance company steps in
- Endorsement(s): Also known as an insurance rider, any policy add-ons that change or provide extra coverage
Average cost of homeowners insurance by state
The national average cost of home insurance for $300,000 in dwelling coverage with a $1,000 deductible is $2,511, based on Insurify data. But home insurance quotes can vary widely based on what state you live in.
Below are the average home insurance rates for a policy with a $300,000 dwelling limit in each state.
The below rates are estimated rates current as of: Tuesday, October 7 at 12:00 PM PDT.
Data reviewed by Chase Gardner
| State Name | Average Annual Premium |
|---|---|
| Vermont | $936 |
| New Hampshire | $1,128 |
| New Jersey | $1,152 |
| Maine | $1,188 |
| Pennsylvania | $1,200 |
| Washington D.C. | $1,212 |
| Delaware | $1,212 |
| Alaska | $1,224 |
| New York | $1,248 |
| Nevada | $1,260 |
| Oregon | $1,320 |
| Hawaii | $1,380 |
| Washington | $1,392 |
| Wisconsin | $1,404 |
| Utah | $1,500 |
| West Virginia | $1,524 |
| Virginia | $1,536 |
| Ohio | $1,584 |
| Idaho | $1,668 |
| Wyoming | $1,668 |
| Massachusetts | $1,716 |
| Connecticut | $1,728 |
| Maryland | $1,836 |
| Indiana | $1,980 |
| Arizona | $2,028 |
| Montana | $2,028 |
| California | $2,160 |
| Minnesota | $2,196 |
| Michigan | $2,220 |
| Illinois | $2,232 |
| Iowa | $2,268 |
| Rhode Island | $2,292 |
| Georgia | $2,304 |
| South Dakota | $2,352 |
| South Carolina | $2,436 |
| North Dakota | $2,472 |
| United States | $2,532 |
| New Mexico | $2,592 |
| Colorado | $2,748 |
| Missouri | $2,796 |
| Tennessee | $2,844 |
| Alabama | $2,988 |
| Arkansas | $3,012 |
| Mississippi | $3,012 |
| Kentucky | $3,048 |
| Nebraska | $3,204 |
| Kansas | $3,336 |
| North Carolina | $3,444 |
| Texas | $4,140 |
| Oklahoma | $4,560 |
| Louisiana | $5,136 |
| Florida | $5,640 |
6.Ask About Discounts
Most insurers offer multiple ways to save. Always ask which discounts you qualify for:
| Discount | How It Works |
|---|---|
| Bundling | Combine home and auto insurance |
| Security Systems | Install alarms or cameras |
| Claims-Free | Maintain a clean claims record |
| Loyalty | Stay with the same company for years |
| New Home | Own or build a recently constructed home |
On average, stacking discounts can reduce your premium by 10–30%.
7. Research the Company’s Reputation
Not all insurers handle claims equally. Choose a company that’s financially strong and customer-friendly.
Look for:
- A.M. Best rating: “A” or better is ideal
- J.D. Power scores: For customer satisfaction
- BBB accreditation: Indicates reliability and responsiveness
You can also browse real-world reviews to see how customers rate their claims experience.
8.Get Free Insurance Quotes — Compare and Save Today!
FAQs
Q1: How much does homeowners insurance cost in the U.S.?
The national average is around $1,400 per year, but prices vary based on state, home value, and coverage level.
Q2: Can I switch insurance providers anytime?
Yes. You can switch at any time — just ensure your new policy starts before the old one ends to avoid a lapse in coverage.
Q3: Does homeowners insurance cover water damage?
Sudden and accidental leaks are typically covered, but flooding and gradual seepage are not.
