A home insurance quote estimates the types of coverage, limits, discounts, and premium you could pay if you bought insurance from a certain homeowners insurance company. If you want coverage, you might want to compare insurance quotes to determine the best company for your needs.
The insurance experts at Bankrate can show you how to compare quotes for homeowners insurance and what to expect during the process. Bankrate worked with Altera Quartus Information Services to get current rates across all 50 states and Washington, D.C. All of the rates on this page are for a home worth $250,000 and has never had a claim.
What is a home insurance quote?
Home insurance quotes, also named property insurance quotations, are estimates of how much a home insurance policy from a certain company will cost and what kinds of coverage and discounts it will include. Every company has its way of figuring out how much your home insurance will cost based on how risky you think your home is.
Your homeowner’s insurance premium will depend on how many claims you have made in the past, how much coverage you need, and what discounts you are eligible for. Quotes for home insurance are only an estimate of how much you will end up paying. When your policy is written, your premium could change.
Types of home insurance quotes
Each quote for homeowners insurance is a package of different types of coverage. Different homeowners have different coverage needs, so the first step in getting quotes is often to figure out how much coverage you need.
Most insurance companies have a tool to help you figure out how much it would price to reconstruct your house, and other types of coverage are usually a percentage of the status of the range on your home.
Home insurance quotes from different companies are likely to be different. That’s because each company uses its algorithm to determine how much your home is worth. The table below, you can notice the most common types of coverage for home insurance.
Depending on your situation, your homeowner’s insurance quotes may include different types of coverage. For example, if you don’t have a lot of detached buildings on your property, you may be able to lower your coverage to the bare minimum. You can also add optional endorsements to your policy to make it your own.
Another important part of your policy is what it covers and how it covers you. You may wish to verify whether your home and possessions are insured for actual cash value (ACV) or replacement cost (RC) (RCV). ACV measures ensure that depreciation will be factored into the claim settlement.
At the same time, RCV coverage means that your insurer will compensate you the replacement cost of your destroyed or damaged property minus the deductible. Usually, cash value policies are cheaper than replacement cost policies, but they may pay out less on claims.
Types of quotes for home insurance
There are different kinds of home insurance policies. Understanding the differences between these policy types, shown by the letters “HO” followed by a number, could help you choose a home insurance quote that best fits your needs. But many insurance companies for homeowners only sell HO-3 and HO-5 policies.
The main difference between HO-3 and HO-5 policies is how they cover risks. Named peril coverage only defends your home and things from fire, theft, and vandalism named in the policy. When you have open perils coverage, anything that isn’t specifically left out is covered. Open perils coverage protects your finances from a wider range of problems.
In addition to choosing between named and open perils, you may also be able to choose between actual cash values and replacement cost values for your home and personal belongings. Both HO-3 and HO-5 policies can also have ACV or RCV settlements, so read your quote carefully and ask an agent for more information if you don’t understand something.
How to obtain a Cheap Home Insurance Quote
If you need a new policy, the first thing you should do is get a quote for homeowners insurance. Quotes for home insurance aren’t hard to get, but you should understand what information you’ll need to have on hand.
What you need to know to get a quote on home insurance
Getting quotes for homeowners insurance is easy, whether online or through an insurance agent. But it does take some time, and you’ll need to give some information to get the most accurate quote:
Personal details:
You must give your name and date of birth to get a quote. If you have your home with somebody else, like a spouse, family member, or anyone else, you must also give them their information.
Property details:
A delivery person will need your address and ZIP code. Companies may be able to look up more information, but you might want to be ready with the year your home was built, the roof’s age, other systems, like your HVAC, and specifics about any custom features.
Coverage needs:
An insurer will look at your history as a homeowner. This could include who your most recent insurer was and details of your most recent policy, such as the limits of your coverage. You can usually change your coverage options, but property insurers need to know more about your previous policy to understand your risk better. For example, they will want to know if you had any add-ons or claims on your property.
How much does an estimate for homeowners insurance cost?
It would help if you did not have to pay to get an insurance quote for your home. They are free to get from companies that sell property insurance. Regarding premiums, the average rate of home insurance in the United States is $1,393 per year for $250,000 worth of coverage on the house. Your home insurance costs depend on several things, so your premium will likely differ from the average.
