EverQuote Home Insurance Services
Levels Of Coverage : 4
Maximum mileage: 130,000
Waiting period: 30 days and 1,000 miles
Availability: Most states (not MA)
Nationwide Homeowners Insurance
Levels Of Coverage : 12
Maximum mileage: Unlimited
Waiting period: 30 days and 1,000 miles
Availability: Most states (not MA)
State Farm Homeowners Insurance
Levels Of Coverage : 5
Maximum mileage: 250,000
Waiting period: 30 days
Availability: Nationwide
Levels Of Coverage : 3
Maximum mileage: 120,000
Waiting period : 30 days
Availability : Nationwide
Farmers Homeowners Insurance
Levels Of Coverage : 2
Maximum mileage: 120,000
Waiting period: 300,000 miles
Availability: price-locked
American Family Homeowners Insurance
Levels Of Coverage : 3
Maximum mileage: Unlimited
Waiting period: 30-days
Availability: nationwide
How to choose homeowners insurance
For most people, coverage and pricing are the two primary considerations when buying home insurance.
What does homeowners insurance cover?
Homeowners insurance covers loss due to disasters, accidents and theft. In addition to the house itself, protected items can include personal belongings, furniture and even shrubs, trees and plants. Your homeowners insurance also protects you from financial liability if someone gets hurt while on your property.
- Personal property coverage: Personal property insurance covers damages caused by a peril, or risk, in your policy, but some insurance agents also offer off-premises coverage. If you want personal property coverage for damages that occur outside of your home, you may need off-premises coverage. Some insurers also provide policies with coverage for loss of use and additional living expenses after a disaster.
- Personal liability coverage: The personal liability portion of a policy covers the financial burden of a lawsuit if someone sues after getting hurt on your property. For example, if your dog bites somebody on your property, liability coverage takes care of legal expenses up to your coverage limit. Most standard policies have liability limits between $100,000 and $300,000.
Coverage levels
There are different types of packages, but most home insurance policies include dwelling coverage and coverage for other structures, personal property and liability coverages. Dwelling coverage is the part of a homeowners policy that insures the actual house, while “other structures” include fences, sheds, gazebos and similar items.
Most home insurance policies include dwelling, other structures, personal property and liability coverages.”
Homeowner insurance policies are labeled HO-1 through HO-8. An HO-3 is the most common type of homeowners policy. Usually, this type of insurance covers damage to your home caused by anything except for named exclusions (e.g., an earthquake or flood).
Your belongings are covered only if the damage is caused by a covered peril in the policy (e.g., fire, lightning strike, vandalism). In insurance speak, a peril is any specific risk or reason for the loss, such as a fire, windstorms, hail, vandalism or the weight of ice or snow, according to the National Association of Insurance Commissioners.
» MOBILE HOME OWNER? Best mobile home insurance
Actual cash value vs. replacement cost
When buying personal property coverage, you’ll likely have the choice between actual cash value or replacement cost coverage options.
- Actual cash value refers to how much your property is worth today, considering its current age and condition. Actual cash value policies deduct depreciation when paying out a claim.
- Replacement cost refers to how much it would be to replace damaged property with an item of similar materials and quality at today’s prices. Replacement cost policies don’t factor in depreciation.
Most insurers offer replacement cost coverage as the default option. Some also offer extended or guaranteed replacement value policies. With extended replacement value coverage, the policy has an extended coverage limit for dwelling replacement.
How much is homeowners insurance?
The national average for homeowners insurance is $1,249 per year, according to the National Association of Insurance Commissioners. However, home insurance costs vary greatly depending on where you live and what kind of house you have.
The average cost for homeowners insurance is $1,249 per year.
Homeowners insurance costs also vary depending on the company you choose, the types of coverages in your policy and the coverage limits.
As you compare coverage costs from multiple companies, it’s important to understand how deductibles and premiums work with home insurance. Otherwise, it’s hard to know if you’re getting the best coverage you need for a price you can afford to pay every month.
- Deductibles: A deductible is the amount you must pay out of pocket before your insurance coverage kicks in. When a homeowners insurance policy has a high deductible, the insurance company generally charges less for annual premiums. For example, a policy with a $1,000 deductible will have cheaper premiums than an otherwise identical policy with a $500 deductible.
- Premiums: Homeowners insurance premiums, or the amount you pay for coverage, vary based on multiple factors, like where you live and the types of coverage you buy.
| Location | Average annual premium |
|---|---|
| Nationwide | $1,249 |
| Tennessee | $1,232 |
| Alabama | $1,370 |
| Mississippi | $1,578 |
| Florida | $1,970 |
How to lower home insurance rates
There are many ways you can save money on home insurance premiums, whether you already have a policy or you’re looking for coverage. Many companies offer discounts for bundling insurance, being a loyal customer, installing safety and security devices in your home and not filing a claim for a certain period of time. If you want to lower your payments, try:
- Increasing your deductible
- Bundling your home and auto coverage
- Eliminating unnecessary coverage
- Investing in a home security system
- Raising your credit score
- Repairing your roof
» LEARN: How to buy homeowners insurance
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- Our top pick overall: ever quote
- Our pick for customizable policies:nation wide
- Our pick for military families: usaa
- Our pick for bundle packages: farmers
- Our pick for seniors: american family
- Our pick: state farm
