How to compare homeowners insurance quotes

It’s important to shop around and compare policy options — including coverage types, limits, deductibles and endorsements — to make sure you’re getting the best home insurance for your situation.

After all, there are numerous home insurance companies, and every household has different protection needs and desires. Plus, the III notes that the homeowners policy you choose is a financial security blanket protecting what is likely your largest financial investment. Therefore, you want to make sure you have a policy you feel comfortable with.

Additionally, prices can vary from carrier to carrier, and some companies may have a better reputation for quickly and reliably handling claims than others.

Some states, like Texas, provide tools that allow residents to compare sample rates for general information purposes. However, for more detailed comparisons the process is similar to how you would compare car insurance rates.

Before you get a quote

Learn about different types of coverage that are available to you. Get an idea of the coverages you want and at what limits. Also, prepare to provide information relevant to your quote, like your address, how old the roof is, if you have a fireplace, and more. All these factors can impact the price of your policy.

A knowledgeable agent can help answer any questions you have, but it’s nice to have a general idea of what you’re looking for in a homeowners policy before starting to call people.

Compare the same coverages from multiple insurance companies

For an accurate insurance rate comparison, it’s important to get quotes for the same types and amounts of coverage from each insurer. Also, double-check to make sure your deductibles are set to the same amount. If you don’t keep quotes consistent, you won’t be able to get a true price comparison.

Compare quotes to determine the best value

After you collect multiple quotes, it’s time to figure out which one is right for you. Look and see which option offers the best value for your desired level of coverage. For example, one company may offer superior discounts for your situation, allowing you to save.

Weigh other relevant factors to reach a decision

The lowest home insurance rate from your comparison might be the best option for you, but before you make a purchase, the III recommends you consider other factors like dependability and peace of mind.

For example, what if your cheapest quote is from a company that has a reputation for an unreliable, drawn-out claims process? In this case, you might decide to pay a little more to secure coverage from a provider that has an outstanding history of customer care.

The III notes you can contact your state’s insurance department, look at reviews and consult independent rating agencies to help determine the trustworthiness of a particular insurer. Once you’ve considered all the relevant factors, you can make an informed decision that considers price, customer service and quality of coverage.

Some states, like Texas, provide tools that allow residents to compare sample rates for general information purposes. However, for more detailed comparisons the process is similar to how you would compare car insurance rates.

Before you get a quote

Learn about different types of coverage that are available to you. Get an idea of the coverages you want and at what limits. Also, prepare to provide information relevant to your quote, like your address, how old the roof is, if you have a fireplace, and more. All these factors can impact the price of your policy.

A knowledgeable agent can help answer any questions you have, but it’s nice to have a general idea of what you’re looking for in a homeowners policy before starting to call people.

Compare the same coverages from multiple insurance companies

For an accurate insurance rate comparison, it’s important to get quotes for the same types and amounts of coverage from each insurer. Also, double-check to make sure your deductibles are set to the same amount. If you don’t keep quotes consistent, you won’t be able to get a true price comparison.

Compare quotes to determine the best value

After you collect multiple quotes, it’s time to figure out which one is right for you. Look and see which option offers the best value for your desired level of coverage. For example, one company may offer superior discounts for your situation, allowing you to save.

Weigh other relevant factors to reach a decision

The lowest home insurance rate from your comparison might be the best option for you, but before you make a purchase, the III recommends you consider other factors like dependability and peace of mind.

For example, what if your cheapest quote is from a company that has a reputation for an unreliable, drawn-out claims process? In this case, you might decide to pay a little more to secure coverage from a provider that has an outstanding history of customer care.

The III notes you can contact your state’s insurance department, look at reviews and consult independent rating agencies to help determine the trustworthiness of a particular insurer. Once you’ve considered all the relevant factors, you can make an informed decision that considers price, customer service and quality of coverage.

The price of home insurance is unique from person to person and depends on various factors, including:

• Location
• Types of coverage
• Credit history
• The value of your home and possessions
• Your insurance/claims history

For example, if you have a large home and lot of belongings, you might need more coverage — and, therefore, pay more money for homeowners insurance — than someone who lives in a tiny house with fewer things.

Your policy's deductible is the amount you'll need to pay out-of-pocket before your insurer will begin paying your claim. A policy with a higher deductible may be less expensive to purchase the insurance policy, but may have a more significant impact on you when it comes time to file a claim. Be sure that each of the policies you compare have the same deductible, and that it's one you are comfortable with.

It's also important to be aware that each type of coverage in a homeowners insurance policy has its own limit, which is the maximum your insurer will pay out for a covered loss. For example, dwelling coverage comes with a maximum amount the policy will pay out if, say, a fire damages your home. The limits you choose may affect the cost of your policy. When comparing quotes, you'll likely want to make sure each policy offers the same coverage limits and that they fit your needs.

In short, it's good to shop around on price. To make a true comparison, be sure you understand the types of coverage available to you, as well as the deductibles and limits that apply under each policy, as well as other factors, like the insurance company’s reputation or ratings.