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How to shop homeowners insurance in 2022

We help you get homeowners insurance with six simple steps. When you’re ready to buy, Policygenius can help you compare quotes from multiple top companies.

Pat Howard 1600

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Pat Howard

Pat Howard

Managing Editor & Licensed Home Insurance Expert

Pat Howard is a managing editor and licensed home insurance expert at Policygenius, where he specializes in homeowners insurance. His work and expertise has been featured in MarketWatch, Real Simple, Fox Business, VentureBeat, This Old House, Investopedia, Fatherly, Lifehacker, Better Homes & Garden, Property Casualty 360, and elsewhere.

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This article has been reviewed by a licensed Policygenius expert to ensure that sources, statistics, and claims meet our standard for accurate and unbiased advice.

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By

Fabio Faschi, PLCS, SBCS, CLCS

Fabio Faschi, PLCS, SBCS, CLCS

Licensed Property & Casualty Insurance Expert

Fabio Faschi is a licensed property and casualty insurance agent. His expertise on home and auto insurance has been featured on Forbes, Consumer Affairs, Realtor.com, Apartment Therapy, SFGATE, Bankrate, and Lifehacker.

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When shopping for homeowners insurance, it's important to compare quotes from at least 3 insurance companies to make sure you're getting the best policy at the best price. How much coverage you need will depend on a variety of factors, including your home's rebuild value, location, the value of your belongings and overall assets, and more.

Shop homeowners insurance locally

Your coverage needs and costs are largely determined by your home's location. If you live in a tornado-prone area of Oklahoma, you're likely going to have different home insurance needs than someone living in a state with more mild weather like Arizona.

Choose your state from the dropdown below to find out about the best companies and average home insurance costs where you live.

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Shop the best home insurance companies

It’s important to compare multiple homeowners insurance companies to ensure that you’re getting the best coverage at an affordable rate. Policygenius agents can help you compare different insurance companies to make sure you’re getting the best policy and deal for your and your home. 

Although it may be tempting, keep in mind that you may not want to automatically go with the cheapest quote — you may also want to consider the company’s track record with customer service and paying out claims. Policygenius has comprehensive reviews of over 25 home insurance companies, including claim satisfaction rankings from companies like J.D. Power and Consumer Reports.

Below are some of the best homeowners insurance companies rated by Policygenius for a variety of shoppers, including those looking for affordability, first-time homebuyers, and more.

CompanyPolicygenius ratingBest for
Allstate

4.8

Overall
Auto-Owners Insurance

5

Regional company
Amica

4.7

Customer service
USAA

4.9

Military veterans
Erie

4.6

Guaranteed home replacement
Hippo

4.6

Home security discounts
State Farm

4.5

High-risk homes
Chubb

4.3

High-value homes
Nationwide

4.2

Easy claims filing
Farmers

4.1

Home & auto insurance bundles

→ Check out our guide to the best homeowners insurance companies in 2022

How to buy homeowners insurance in 6 easy steps

The best way to shop for homeowners insurance is to compare quotes from at least three insurance companies so that you're not missing out on better or more affordable coverage in your area. With Policygenius, you can compare and buy home insurance in a matter of minutes. Just answer a few brief questions about your house, and we'll provide you with several policy options at a price point that suits your needs.

→ Learn about the best home insurance companies

1. Learn about how much coverage you need

When you get home insurance quotes, the coverage amounts listed are often estimates — not an exact calculation of how much coverage you’ll need. To make sure you’re being quoted for the right amount of coverage, consider getting a more accurate estimate of the following:

  • The replacement cost of your home: The amount of insurance on your house should be equal to its replacement cost — the amount it would cost to rebuild the home from the ground up after a disaster. Insurers often provide their own replacement cost estimate using online estimation tools, but for a more precise calculation, consider hiring a professional appraiser.

  • The total value of your personal belongings: You’ll want enough personal property coverage to cover the value of all of your stuff, like appliances, furniture, and electronics. 

  • The total value of all of your assets: You should have enough personal liability coverage to cover your entire net worth in case you’re sued. 

Your homeowners insurance coverage needs will also depend on your home’s location and the risks (wildfires, hurricanes, tornadoes) where you live. If you live in a high-risk coastal area or region that experiences frequent wildfires, your coverage needs will be different than if you lived somewhere with a more mild climate. 

→ Learn about how to calculate homeowners insurance

2. Get familiar with home insurance policy lingo

There are six types of coverages that are in every standard homeowners insurance policy. Understanding how you’re protected by each of the coverage types in a standard policy will be useful when comparing policies. 

  • Dwelling: Covers physical damage to the structure of your home and any attached structures, like a garage or porch 

  • Other structures: Covers physical damage to structures on your property that aren’t attached to the home itself, like a detached garage, guest house, or fencing around your property 

  • Personal property: Covers damage or theft of personal belongings that you own, including furniture, clothes, jewelry, and electronics 

  • Additional living expenses (ALE): If your home is severely damaged or destroyed by a covered loss, ALE can cover the cost of temporary lodging and relocation expenses while your house is being repaired or rebuilt 

  • Personal liability: Covers you and your assets from expensive lawsuits if you’re ever held liable for someone else’s injury or property damage 

  • Medical payments: Covers guests’ medical expenses if they’re injured on your property

You’ll also have to choose between three levels of coverage:

  • Actual cash value: The cheapest option, actual cash value reimburses you for the value of your property minus the cost of depreciation, or wear and tear. This leaves you paying more out of pocket when you file a claim. 

  • Replacement cost value:  Most insurers allow you to upgrade to replacement cost value coverage, which reimburses you for the value of your property at today’s prices. This provides larger reimbursements when you file a claim.   

  • Extended replacement cost value: Another optional upgrade, extended replacement cost value coverage reimburses you for the cost to rebuild your home — even if it’s more than your policy limit. This protects you from construction material and labor costs that tend to skyrocket after a natural disaster.

→ Learn more about the different types of home insurance coverages

Flooding and earthquakes aren’t covered under standard home insurance policies

Insurance companies will only accept claims if the cause of damage or property loss is a covered peril in your policy. Examples of covered perils include fire, wind damage, theft, burst pipes, fallen trees, and more. Disasters that are not covered include flooding, earthquakes, and landslides.

3. Gather information about your home

To get an accurate quote estimate, you’ll need to give the insurer information about yourself and the type of property you’re insuring.

Here’s some of what you’ll need to provide when you shop homeowners insurance policies.

  • Your home’s square footage and roof type (like hip or gable)

  • The heating type of your home’s appliances (gas or electric)

  • The renovation history of your home

  • Whether you have any pets, trampolines, or a pool

  • Whether it's your primary or second home

  • Whether you rent it out in the short or long term

The more details you give about your home, the more accurate your quote will be. If you’re simply swapping out policies, most of this information will be available on your old policy. Otherwise, you can find your home’s structural details by searching for your property on your county’s property appraiser website. 

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4. Compare home insurance quotes

The easiest way to buy homeowners insurance is through a marketplace like Policygenius where you can compare quotes across multiple companies in your area. Once you apply, a licensed expert will reach out with policy recommendations that match your coverage needs and budget. They’ll also nail down any home insurance discounts you qualify for. 

We recommend paying close attention to quotes from any insurance companies you already have a relationship with, as they often offer lower rates for existing customers. So if you already have an auto or umbrella insurance policy with a specific carrier, you may get a bundling discount for signing up for home insurance with that same insurer.

Apart from the policy itself, you’ll also want to look into the insurance company’s background. Check to see if the company insuring your house is financially stable, read reviews, and check ratings with third-party sites like AM Best, J.D. Power, and Consumer Reports.

5. Choose your policy 

Once you’ve compared quotes, it’s time to select a policy and customize it to suit your coverage needs.

If you have a mortgage, ask your loan officer if the coverage in your policy meets the lender’s insurance requirements. Homeowners insurance doesn’t cover water damage caused by flooding, for example, so you may need to get separate flood insurance if you live in a high-risk flood zone. 

There are also several optional home insurance endorsements that can be added to your policy for an additional cost.

Some of the most common endorsements are:

  • Water backup coverage 

  • Appliance breakdown coverage

  • Service line coverage

  • Scheduled personal property coverage

  • Extended replacement cost  

  • Guaranteed replacement cost

  • Flood coverage

  • Earthquake coverage

→ Learn more about homeowners insurance endorsements 

6. Finalize your policy details

You’ve compared quotes, gotten all your most pressing questions answered, selected a policy, and passed your home inspection. Now it’s time to finalize a few policy details.

  • Choose a deductible. You’ll need to set your policy’s deductible, which is the amount you’re responsible for covering on each claim before your insurance will pay out. A higher deductible means a lower premium, and a lower deductible means higher premiums. 

  • Determine how your premiums are paid. It's common practice for lenders to require that premiums for the year be paid in full ahead of closing on your mortgage. If insurance and property taxes are paid through an escrow account set up by your lender, this payment will likely be part of your mortgage closing costs. 

  • Set your policy dates. Lastly, you’ll choose your policy period, which is when your home insurance starts and ends. If you’re switching homeowners insurance providers, a Policygenius agent can cancel your old policy, set an effective date for your new one, and inform your loan officer of the switch. 

Once your billing and policy details are set and your lender approves of the policy, you’re good to sign on the dotted line, pay your first premium, and activate your homeowners insurance. At this point, you'll receive your homeowners insurance declarations page that lists out basic details about your policy and coverage amounts.

Where to shop for home insurance

When shopping for homeowners insurance, you’re going to want to compare at least three different insurance companies to make sure you’re getting the best coverage for the best price. With most major insurers, you have a few options when it comes to getting a quote. 

  • Online through the insurance company’s website

  • Through the insurer’s mobile app (if they have one)

  • Over the phone

  • In person at a local office 

  • Online through an insurance marketplace like Policygenius

4 mistakes to avoid when buying homeowners insurance

When shopping for homeowners insurance, here are a few common pitfalls to avoid:

  • Focusing on costs rather than coverage levels. Keep in mind that the cheaper your policy, the more you’ll have to pay out of pocket if you file a claim.

  • Not understanding what is and isn’t covered in your policy. Read through your policy to make sure you’re properly covered in the event of a wildfire, hurricane, earthquake, or flooding. Most insurance companies require additional coverage endorsements for damage caused by natural disasters.

  • Skimping on personal property damage coverage. Only 49% of homeowners say they have an up-to-date home inventory. [1] It’s important to log your belongings with receipts and photos. You should also make sure to include items like heating and cooling systems, appliances, home office equipment, and fine jewelry when tallying your personal property coverage limits. 

  • Forgetting to re-shop your policy each year. Many insurers raise rates each year at your time of renewal due to inflation and changes to the value of your home. Our licensed agents at Policygenius can help you re-shop your policy each year to make sure you’re still getting the most bang for your buck. And if you can save money by switching carriers, they'll handle all of the paperwork for you — even if you have an escrow account.

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How do home insurance companies determine your premium?

The average cost of home insurance is $1,899 per year, or around $130 a month. Your home insurance premium is directly tied to your likelihood of filing a claim. That’s why the age of your home and location play a pivotal role in how much you pay each month. For example, you’re more likely to file a claim if your home is older or you live in an area prone to flooding, which typically equals higher rates.

Here are a few other factors insurance companies consider when deciding your premium:

  • Claims history. If you have multiple insurance claims on your record in the past five years, insurers will think you’re more likely to file a claim, which spells higher rates.

  • Home’s building materials. Your home’s building construction, roof type, heating type, and the condition of your home all play a role in your insurance premiums.

  • Credit score. Insurers look at parts of your credit score when determining your rate. Statistically, people with a lower insurance score are more likely to file a claim. 

  • Neighborhood crime rate. If you live in an area prone to break-ins or vandalism, you’ll see higher rates to match that higher risk.

  • Owning a pool, trampoline, or dogs. Most insurance companies charge higher premiums if you have a pool, trampoline, or even certain dog breeds since your home poses a greater risk of accidents happening.

The average cost of homeowners insurance is $1,899 per year for $300,000 in dwelling coverage, according to our analysis of 2022 home insurance rates from across the country.

Below are how different factors can raise that rate. 

High-risk factor

Average annual cost

Percentage difference from national average

Aggressive dog

$1,986

4.58%

Pool

$2,002

5.42%

Poor credit

$3,645

91.94%

1 claim

$2,101

10.64%

3 claims

$2,916

53.55%

5 claims

$4,407

132.07%

75-year-old home

$1,931

1.69%

100+ -year-old home

$1,956

3.00%

20-year-old roof

$1,913

0.74%

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Frequently asked questions

How soon before closing should I get homeowners insurance?

To be on the safe side, start shopping for homeowners insurance around three weeks to a month ahead of your closing date. Most mortgage lenders will require proof of homeowners insurance at least three business days prior to closing on the home, and it’s not unusual for lenders to require this documentation as early as 15 days prior to closing.

→ Learn more about how long it takes to get homeowners insurance

How do I choose homeowners insurance?

When shopping for homeowners insurance, you should compare at least three different insurance companies. This will help you get a better feel for which companies offer the best coverage options at an affordable price. The agents at Policygenius can help you compare multiple insurance companies to help find the best insurance company for you and your home.

How much is home insurance a month?

Homeowners insurance costs around $158 a month or $1,899 annually, according to our analysis of 2022 home insurance rate data across the country. But in some states, homeowners insurance costs as little as $900 a year.

Is it worth shopping around for home insurance?

Yes, comparing different homeowners insurance companies will help you ensure that you're getting the best deal possible for your coverage needs.

What is most important when shopping for homeowners insurance?

When shopping for home insurance, it's important to compare multiple different companies to make sure you're getting the best policy for the best price. It's also important to learn about how much coverage you need. That means you'll want an estimate of your home's replacement cost — meaning the rebuild value of your home — the cost of your belongings, and an estimate of your the value of your total assets. The agents at Policygenius can help you find this information to make sure you're getting an accurate estimate of your coverage needs.

Does shopping for homeowners insurance hurt your credit?

Typically no, because home insurance quotes are a soft pull, not a hard pull (which does affect your credit). However, your credit score can affect how much you will pay for your home insurance. Generally, if you have a higher credit score you will see lower rates and vice versa.

What happens to homeowners insurance when someone dies?

Homeowners insurance doesn’t automatically pass on to the new owner of the home after someone dies. You usually have around 30 days to notify the insurance company that the homeowner died — otherwise they’ll likely cancel the policy and the home will be without coverage. Even if you’re selling a home, it pays to take out a temporary or short-term home insurance policy in the meantime to ensure you’re protected until it’s sold. You can learn more with our guide to home insurance after someone dies.

References

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Policygenius uses external sources, including government data, industry studies, and reputable news organizations to supplement proprietary marketplace data and internal expertise. Learn more about how we use and vet external sources as part of our

editorial standards.
  1. The Insurance Information Institute

    . "

    Facts + Statistics: Homeowners and renters insurance

    ." Accessed May 25, 2022.

Author

Managing Editor & Licensed Home Insurance Expert

Pat Howard

Managing Editor & Licensed Home Insurance Expert

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Pat Howard is a managing editor and licensed home insurance expert at Policygenius, where he specializes in homeowners insurance. His work and expertise has been featured in MarketWatch, Real Simple, Fox Business, VentureBeat, This Old House, Investopedia, Fatherly, Lifehacker, Better Homes & Garden, Property Casualty 360, and elsewhere.

Expert reviewer

Licensed Property & Casualty Insurance Expert

Fabio Faschi, PLCS, SBCS, CLCS

Licensed Property & Casualty Insurance Expert

gray linkedin icon link

Fabio Faschi is a licensed property and casualty insurance agent. His expertise on home and auto insurance has been featured on Forbes, Consumer Affairs, Realtor.com, Apartment Therapy, SFGATE, Bankrate, and Lifehacker.

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