How To Shop For Home Owners Insurance?

Shopping for home insurance can be overwhelming. There are so many companies and so many options. How do you know you are getting the best deal? The best way to start is by understanding what you need. Homeowners insurance is there to protect your house and belongings in the event of a covered disaster. That could be something like a fire or a windstorm. It could also be theft or water damage. Once you know what you need, you can start shopping around.

Get quotes from different companies and compare them side-by-side. Make sure you understand the coverage each company is offering before making a decision. You should also consider discounts when shopping for homeowners insurance. Many companies offer discounts for things like installing security systems or being claims-free for a certain number of years. Following these tips will help you get the best deal on homeowners insurance.

What Does Homeowners Insurance Cover?

Most homeowners insurance policies cover the following:

– The dwelling itself, as well as any attached structures (e.g., a garage or deck)
– Your personal belongings (e.g., furniture, clothing, electronics)
– Living expenses in the event that your home is uninhabitable due to a covered loss (e.g., you need to stay in a hotel while your home is being repaired)
– Medical expenses for injuries that occur on your property, even if they’re not caused by you or a member of your family
– Liability protection in the event that someone sues you for something that happened on your property

Replacement Cost vs. Market Value

When it comes to your home, there are two key numbers that insurance companies use to determine your rates: replacement cost and market value. Here’s a look at the difference between the two and how they can affect your homeowners insurance rates.

Replacement cost is the amount it would take to rebuild your home from scratch, using materials of the same quality. This number is usually higher than your home’s market value, since it includes the cost of labor and other factors.

Market value is what you could sell your home for on the open market. This number can fluctuate based on a number of factors, including the current housing market and the condition of your home.

Generally speaking, your homeowners insurance rates will be based on replacement cost rather than market value. That’s because insurers are more concerned with making sure you’re able to rebuild your home if it’s destroyed, rather than getting paid out based on its resale value.

However, there are some situations where market value may come into play when determining rates. For example, if you live in an area where property values have been steadily declining, your insurer may reduce your coverage limits to reflect the current value of your home.

It’s important to keep in mind that both replacement cost and market value can change over time, so it’s a good idea to review your policy regularly and make sure that you’re still adequately covered. 

How Much Homeowners Insurance Should You Buy?

It’s important to have enough homeowners insurance to protect your home and possessions, but you don’t want to overbuy and waste money on coverage you don’t need. So how much homeowners insurance should you buy?

There are a few things to consider when determining how much coverage you need. The first is the value of your home and possessions. You’ll want to insure your home for at least its replacement cost, which is the amount it would cost to rebuild or replace your home if it were destroyed. Your possessions are also worth considering, as they can add up quickly. A good rule of thumb is to insure your belongings for 50-70% of the value of your home.

The second thing to consider is the type of coverage you need. There are two main types of homeowners insurance: dwelling coverage and personal property coverage. Dwelling coverage protects your home itself, while personal property coverage protects your belongings. You’ll need to decide how much coverage you need for each based on the value of your home and possessions as well as your risk tolerance (how much risk you’re willing to take on).

Finally, you’ll need to consider any special risks that apply to your home. If you live in an area prone to hurricanes, for example, you’ll likely need more coverage than someone who lives in a more stable region. 

Factors That Affect Your Homeowners Insurance Rates

There are many factors that affect your homeowners insurance rates. Some of these factors are within your control, while others are not.

The most important factor in determining your homeowners insurance rates is the amount of coverage you need. The more coverage you need, the higher your rates will be. You should always purchase enough coverage to protect your home and belongings from damage or destruction.

Another important factor that affects your homeowners insurance rates is the type of home you have. Homes that are made of brick or stone are usually cheaper to insure than frame homes. This is because they are less likely to be damaged in a fire or other disaster.

The location of your home also affects your homeowners insurance rates. If you live in an area that is prone to natural disasters, such as hurricanes or earthquakes, you will pay more for coverage than if you live in a safer area.

Your credit score is another factor that affects your homeowners insurance rates. Insurance companies use credit scores to determine how likely you are to file a claim. The higher your credit score, the lower your rates will be.

The age and condition of your home also affect your homeowners insurance rates. Older homes are usually more expensive to insure than newer homes because they are more likely to suffer damage from weathering and wear and tear.

How To Get The Best Deal On Homeowners Insurance

When it comes to shopping for homeowners insurance, there are a few things you can do to get the best deal possible. Here are a few tips:

1. Get quotes from multiple insurers. This is the best way to compare rates and coverage options.

2. Make sure you understand the coverage options before you make a decision.

3. Don’t be afraid to negotiate with insurers. You may be able to get a better deal if you’re willing to haggle.

4. Consider raising your deductible. This will lower your premiums, but make sure you have enough saved up in case you need to file a claim.

5. Shop around every year or two to make sure you’re still getting the best deal possible. Rates and coverage options can change over time, so it’s important to stay on top of things.


Shopping for home insurance can be a daunting task, but it doesn’t have to be. By following these tips on what to look for in a policy and how to shop around, you can be sure you’re getting the best possible coverage for your needs. And, if you ever have any questions about your policy or need to file a claim, our team at The Zebra is always here to help.