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Last updated May 2026
Key steps to shopping for homeowners insurance
- Understand what standard homeowners insurance covers
- Gather key details about your home and risk profile
- Estimate how much coverage you may need
- Compare quotes and policy features from multiple insurers
- Review optional coverages and insurer reputation before choosing
What does homeowners insurance cover?
Homeowners insurance can help you repair or replace your home and belongings if they’re damaged or destroyed by certain covered events, such as fire, theft or severe weather. A standard policy typically includes:
- Dwelling coverage, which can help pay to repair or rebuild your home’s structure.
- Personal property coverage, which can help cover belongings like furniture, clothing or electronics.
- Liability coverage, which can help protect you if you’re found responsible for bodily injury or property damage to others.
- Additional living expenses (ALE), which can help cover temporary housing costs if your home becomes uninhabitable.
What information do you need to get homeowners insurance quotes?
Before you request quotes for home insurance, it helps to have accurate details about your home and risk profile.
What you’ll need before you shop:
- Property address, year built and age of major systems like the roof
- Square footage and construction type
- An estimate of your home’s replacement cost
- Your prior claims history. Insurers may review a C.L.U.E.® report, which contains a 5-year history of claims for a person or property, according to the Insurance Information Institute
- Safety or risk-related features, such as alarm systems, pets, pools or trampolines
For a detailed checklist of the information an agent or insurer may request, see the National Association of Insurance Commissioners (NAIC) Shopping Tool for Homeowners Insurance.
Need help understanding your coverage options and limits?
This chart shows sample coverage for a home insured at approximately $350,000 — an amount typical for rebuilding cost estimates for many U.S. homes. Actual coverage needs vary by location, home details, insurer and policy.
| Coverage type | Example coverage limits | What it typically covers |
|---|---|---|
| Dwelling coverage | $350,000 | Repairing or rebuilding a home’s structure after a covered loss |
| Personal property coverage | $175,000 (50% of dwelling) | Furniture, clothing, electronics and other belongings |
| Liability coverage | $300,000 – $500,000 | Injuries or property damage you’re responsible for |
| Additional living expenses (ALE) | Varies by policy. Typically a percentage of dwelling coverage | Temporary housing and extra costs if your home is uninhabitable |
Key factors in how much coverage you may need
When choosing the amount of coverage, you should consider factors such as what it could cost to rebuild your home, replace your belongings and other important variables — not just what you paid for the property.
- Rebuilding costs vs. market value
Construction costs and building codes often matter more than real estate prices.
- Value of your belongings
Creating a home inventory can help you estimate appropriate personal property coverage.
- Financial assets and lifestyle risks
Pools, dogs, rental activity or frequent guests may affect liability needs.
- Local environmental risks
Weather patterns, wildfire exposure or regional construction costs can influence coverage decisions.
- Your chosen deductible
A higher home insurance deductible may lower premiums but increase out-of-pocket costs after a claim.
How to compare homeowners insurance quotes
Comparing quotes from multiple insurers can help you better understand coverage differences, pricing and available discounts you may qualify for. The NAIC suggests getting several quotes.
Ways to compare homeowners insurance quotes
| Method | How it works | Potential benefits | Things to consider |
|---|---|---|---|
| Work with an agent | An agent gathers quotes and explains coverage options | Personalized guidance, local expertise, help understanding coverage details | May not include every insurer in the market |
| Use online comparison tools | Enter home details once to receive multiple quotes | Fast, convenient and useful for price benchmarking | Coverage differences may not be clear without further review |
| Contact insurers directly | Request quotes from specific companies | Allows deeper evaluation of each insurer’s offerings | Can be time-consuming without guidance |
Method: Work with an agent
- How it works: An agent gathers quotes and explains coverage options
- Potential benefits: Personalized guidance, local expertise, help understanding coverage details
- Things to consider: May not include every insurer in the market
Method: Use online comparison tools
- How it works: Enter home details once to receive multiple quotes
- Potential benefits: Fast, convenient and useful for price benchmarking
- Things to consider: Coverage differences may not be clear without further review
Method: Contact insurers directly
- How it works: Request quotes from specific companies
- Potential benefits: Allows deeper evaluation of each insurer’s offerings
- Things to consider: Can be time-consuming without guidance
What affects homeowners insurance premiums?
Home insurance premiums are based on how insurers evaluate the risk of insuring your home. Factors related to your property, your personal history and available discounts can influence what you pay.
Location and local risks
- Exposure to hurricanes, wildfires, severe storms or flooding
- Proximity to fire stations and hydrants
- Local rebuilding costs and building code requirements
Home characteristics
- Age, size and construction materials
- Roof condition and major system updates
- Safety features such as smoke detectors or security systems
Claims history
- Past insurance claims on the property or by the homeowner
- Frequency and type of prior losses
Credit-based insurance score
- In some states, insurers use credit-based insurance scores to help assess risk
- Use and impact vary by state regulations
Available discounts
- Bundling home and auto policies
- Installing protective devices
- Maintaining a claim-free history
Additional home insurance coverage options
A standard home insurance policy may not cover every type of risk. These optional coverages can help close potential gaps.
Flood insurance
Damage from flooding is typically not covered under standard homeowners policies. Separate flood insurance may be available through the National Flood Insurance Program (NFIP) or private insurers.
Sewer or water backup coverage
An endorsement may help cover damage if water backs up into your home from a sewer, drain or sump pump. These events are often excluded from typical home insurance policies.
Umbrella insurance
An umbrella policy can provide additional liability protection beyond the limits of your home or auto insurance, which may be useful if you have significant assets or higher exposure to risk.
How to choose a homeowners insurance company
Taking time to evaluate the insurer behind the policy can help you understand the company’s financial strength, service reputation and specific policy details.
Financial strength ratings
Independent rating agencies such as AM Best assess insurers’ financial stability and ability to pay claims. Strong ratings may indicate an insurer’s long-term reliability, especially after widespread disasters.
Customer service and claims support
Look for indicators such as claims-handling reputation, responsiveness and local support options. Reviews, complaint ratios from regulators and agent accessibility can provide helpful context.
Coverage comparison checklist
Before making a final decision, look at the policies side by side to confirm you’re making an apples-to-apples comparison with the same or similar levels of coverage.
- Dwelling coverage limits and valuation method (replacement cost vs actual cash value)
- Personal property limits and any special sub-limits (e.g., jewelry, electronics)
- Liability coverage limits and optional umbrella protection
- Deductible amount and how it applies (flat vs percentage)
- Exclusions or endorsements for risks such as floods or water backup
- Additional living expenses coverage limits and duration
- Available discounts and multi-policy savings
FAQs
How many homeowners insurance quotes should I get?
The National Association of Insurance Commissioners (NAIC) recommends comparing quotes from several insurers so you can evaluate differences in coverage, price and available discounts. Getting quotes from at least three companies may help you make a more informed decision.
What factors should I consider when choosing a deductible for homeowners insurance?
A higher deductible typically lowers your premium but increases your out-of-pocket costs if you file a claim. Choosing a deductible often depends on how much financial risk you’re comfortable with.
Does homeowners insurance cover flood damage?
Standard homeowners insurance policies typically do not cover flood damage. Separate flood insurance may be available through the NFIP or private insurers.
What’s the difference between replacement cost and market value?
Replacement cost reflects what it could cost to rebuild your home using similar materials and labor, while market value includes land value and local real estate conditions. Insurance coverage is generally based on rebuilding costs rather than market price.
The information contained in this page is provided for general informational purposes only. Read our editorial standards for Insurance Questions and other content. We make no representations or warranties of any kind, express or implied. This does not refer to any specific insurance policy and nothing herein is intended to replace or modify any terms in your actual policy.
Farmers may also provide information on topics that are not directly about insurance policies or coverage that we believe could be helpful to you. Information in such articles is not meant as professional advice, and any reliance you place on such information is therefore strictly at your own risk.
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