How to Compare Home Insurance Quotes

When you own a home, having homeowners insurance is one of the best ways to protect your asset. Finding the right coverage for your home takes time, since you’ll want to shop around for not only the best price, but the best quality of protection as well.

Not sure where to start? We’ve highlighted what to look for on a homeowners quote when comparing companies so you’re in the know and can make the best choice possible.

Compare Similar Coverages

When quoting home insurance from different companies, the most effective way to get accurate comparisons is to request quotes with similar coverage amounts and coverage types. While one policy may be less expensive than another, you may discover that the more expensive one offers better limits, deductibles and a wider range of coverages.

Compare Homeowners Insurance Rates

There are many factors that play a role in what you pay for your home insurance. Understanding what each quote is offering will help you find coverage that matches your needs and budget.

Coverage limits. Your coverage limit is the amount your insurance company will pay up to if you make a claim and it’s covered. The coverage limits you choose significantly impact your rates, since the higher your limits, the better protection you have. But this also means a higher premium. On a similar note, choosing lower coverage limits may lower your premium, but you’re then giving up that higher level of financial protection.

For example, you’ll want to choose levels and types of personal property coverage based on all the belongings in your home. Let’s say your home was broken into and many expensive items were stolen. If you opted for coverage with lower limits, you’ll pay more out of pocket now since the personal property coverage types and limit you selected won’t necessarily cover the cost for everything that was stolen.

Types of coverage. Home insurance is unique to each homeowner, since what you’re trying to protect varies from household to household. So quoting the types of coverages your home needs will help you get a more accurate estimate. For example, do you have a finished basement? You’ll probably want to consider adding sump pump coverage to your policy, which may make your premium rate slightly higher, but it can really save the day if your sump pump ever overflows and your finished basement suffers damage.

You’ll also want to consider the fact that jewelry is only covered up to a certain value on a standard home insurance policy. Usually, this amount isn’t enough to fully cover the cost of all the jewelry you own. The good news is you can itemize personal property, like your diamond wedding ring, which not only allows you specify the value but also gives you a broader level of coverage to protect you in more instances, such as in case you lose your ring.

Take a look at our homeowners insurance checklist for key questions and information to gather. This way you’ll have a better idea of what coverage you need for your home.

Remember — you have insurance to protect you against substantial financial loss, so above all else, when comparing quotes, make sure you’re not sacrificing coverage in order to pay less on your premium. Not sure about the types of coverages you need? Try out our homeowners insurance calculator.

Deductibles. For some coverages, you’ll have to pay a deductible, which is the amount of the damage you’re responsible for before the insurance company steps in to help cover the cost. Choosing a higher deductible typically means your premium may be lower, but you’ll pay more out of pocket in the event you have to file a claim. On the other hand, a lower deductible means you’ll pay less out of pocket if you have a covered loss, but pay more for your premium.

Let’s say you chose coverage with a high deductible, making your premium price lower. After your home was burglarized and valuables you had worked so hard for were stolen, you’d pay more out of your own pocket to cover the cost to replace the items before your insurance company steps in to help.

So, when comparing rates, be sure to consider what kind of deductible you’ll be paying and how that fits into your overall costs and savings you have accumulated for emergency situations.

Look for Qualified Discounts

When comparing quotes, be sure to take a look at the discounts offered by the insurance company. Most companies offer a large range of homeowners insurance discounts to help you save on your premium. From having smart home devices to bundling your home and auto, you’ll want to see what discounts you’re eligible for and compare them to discounts offered by other companies.

Find the Right Insurance Policy for Your Home

Another important factor to consider when comparing quotes is how reliable is the company. At American Family Insurance, we’ve helped customers restore their dreams for over 90 years. We want to give you the confidence that, in a time of need, we’ll be by your side with our expertise to help get your life back to normal.

And our agents are dedicated to building you coverage that matches your needs — they’re your go-to for all things insurance. Connect with an agent (Opens in a new tab) today to get a homeowners insurance quote.