What is a home insurance quote?
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 and weigh each factor differently. Getting multiple quotes from insurers allows you the chance to compare rates and coverages. You can customize a quote by choosing the coverages you need.
How to get a home insurance quote
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. If you’re using an online tool, you can typically request a quote 24/7. 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 how much home insurance coverage you need. These questions can affect your home insurance rate. Other factors include:
- Your house’s construction materials
- Square footage of your house
- Location of the closest fire station or water source
- Crime rate and natural disasters in your area
- Remodeling or renovations in your home
- Deductible amount
- Marital status
Your personal property coverage limit is typically 50% of your dwelling coverage. However, you can lower or raise 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.
Types of home insurance quotes
These policies will either be an open-peril or a named-peril policy type. Open-peril coverage works by covering everything that’s not specifically excluded in the policy, while named-peril coverage protects against causes that are specifically named or listed in the policy.
Policy options What is covers HO-1 This 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 also only cover the structure of your home and don’t cover your personal belongings. HO-2 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 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. Your personal belongings, however, are only covered for perils stated in the policy. HO-3 policies also include personal liability coverage. There are six coverages in a standard HO-3 homeowners insurance policy, and they each have their own coverage limit. HO-4 If you rent, you can purchase an HO-4, also known as a renters insurance policy. HO-5 HO-5 policies are the most comprehensive policies. A HO-5 policy, unlike other single-family home insurance policies, has an open-peril protection for your belongings. HO-6 HO-6 policies are intended for condo and co-op unit owners. HO-7 HO-7 policies are intended for mobile homes. HO-8 Homeowners who have an older custom home, or an older home that was built with building materials that are difficult to find, would most likely need to purchase an HO-8 policy.
Home insurance coverages
A standard HO-3 home insurance policy has six coverages, which include coverage for your home and your belongings.
HO-3 home insurance policy coverages Coverage Typical coverage amount What it covers 
Dwelling Cost to rebuild your home Your home 
Other structures 10% of dwelling The other structures 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
How to compare home insurance quotes
When getting 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 the 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 $200,000 $1,904 $275,000 $2,355 $350,000 $2,836 $425,000 $3,344 $500,000 $3,881 Note: Average rates are based on non-binding estimates provided by Quadrant Information Services. States used for averages include Arizona, Georgia, Florida, Texas and Illinois. Your rates may vary.
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. A deductible is the amount you pay on a home insurance claim before your insurer covers the remainder, up to your policy limits. Increasing your deductible from $1,000 to $2,000 can decrease your annual premium by $204 on average. 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.
Deductible Average annual premium $500 $2,090 $1,000 $1,931 $1,500 $1,830 $2,000 $1,727 Note: Average rates are based on non-binding estimates provided by Quadrant Information Services. Your rates may vary.
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).
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. HO-3 policies typically pay out claims at actual cash value for your belongings, while HO-5 policies cover them at replacement cost.
4. Consider discounts
Insurance companies can offer different types of discounts or savings that may reduce your premium payment. A common discount that insurers offer is a bundling discount. If you have auto insurance, getting home insurance from the same insurance company can save you a great deal of money. Other common discounts include claims-free and safety device discounts. We recommend comparing discounts in order to get a better idea of what you will pay for home insurance.
5. Consider reviews and the financial strength of companies
When choosing a home insurance provider, it’s important to consider customer service and the financial strength of the company in order to get quality service when filing a claim. You can see how QuoteWizard scored home insurance companies based on their coverages, discounts, third-party ratings and more below.
An example of comparing home insurance quotes
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 Monthly premium $ $$ Dwelling coverage $150,000 $200,000 Personal liability coverage $100,000 $300,000 Wind deductible $1,000 $250 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.
Questions to ask about your quote
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.
A few more tips for comparing home insurance quotes
Here are a few more things to consider as you shop for home insurance and compare quotes:
- We recommend buying enough coverage so you’ll be able to fully rebuild your home and replace your belongings in the event of a catastrophe.
- Take the time to make an inventory of your possessions. We recommend writing down purchase dates, prices, as well as each item’s model name and model number. We also recommend keeping receipts and photos of your items.
- We recommend reviewing your policy every year in order to get the best rates. You may have made changes to your home, or insurance companies may have changed their policies, either of which could impact your home insurance rate.
- If you have a few insurance companies in mind when shopping, you can talk to their insurance agents to get more information on the policies and to get the best premium you can.
- Before submitting a quote, we recommend double-checking all the information you noted about you and your home for accuracy.
