How to Get Homeowners Insurance Easily [Start Here]

Whether you're buying homeowners insurance for the first time or looking to update your current policy, you want to make sure you have the right coverage at the best price. But figuring out how to get homeowners insurance can be a major headache. 

Luckily, our insurance experts are here to help you every step of the way. From how to determine your home insurance coverage needs to the information you’ll need to sign up, our guide covers everything you need to know about shopping for home insurance.

Key takeaways

• Learning how to buy homeowners insurance may be easier than you think—even if you’ve never done it before. 
• First, you’ll estimate how much coverage you need based on the value of your home and all your personal belongings.
• Then, you’ll gather all the information you need about your home and personal details to speed up the shopping process.
• Then, you’ll round up your favorite insurance providers and compare them based on coverage options, discounts, and financial stability.
• Finally, you’ll purchase the home insurance policy that fits your needs and budget.

Determine your home insurance coverage needs

The first step to getting home insurance is to figure out the right amount of coverage you need. A traditional policy typically includes these three coverages: 

• Dwelling coverage. This part covers your home and additional structures on your property, such as fences, sheds, and detached garages. Some policies even include loss of use coverage to help cover living expenses if your home becomes uninhabitable due to a covered loss.
• Personal property coverage. Items like electronics, furniture, clothing, and other personal belongings are covered under a named peril policy. This means you'll only be covered for damages caused by events specifically listed in your policy, such as fire, hail, or theft. Consider adding specific peril coverage or increasing your policy limits to protect your items further.
• Personal liability coverage. This part of your policy offers financial and legal protection for your assets if someone is injured on your property and sues you for medical fees or lost wages. It also covers property damage caused by others or accidental damages you make to someone else's property.

Each coverage category has its own limits and exclusions, so you’ll likely need to personalize your policy to fit your needs. For example, if you have an older home that’s costly to repair or expensive jewelry or electronics, you may need to adjust your coverage limits accordingly.

⚡Expert Tip: When buying homeowners insurance, discuss potential policy gaps with your insurance agent, especially if you live in a high-risk area. Certain perils, such as earthquakes, floods, and sewer backups require separate catastrophe insurance policies for full coverage.

Consider policy add-on options

The next thing to consider as you shop for home insurance is any additional coverage options you may want to buy. These add-ons help you customize your policy so you have extra financial protection when you need to file a claim. 

You usually choose your add-ons based on your home’s unique risks or your personal preferences. For example, if your home inspection reveals an older sewer system, you may want to add water backup or service line coverage to help pay for repairs if the system fails.

Other common home insurance add-ons to purchase may include:

• Flood insurance coverage
• Earthquake insurance
• Windstorm insurance
• Sinkhole coverage
• Equipment breakdown coverage
• Replacement cost insurance for personal belongings

These add-ons cover specific perils typically excluded from standard homeowners insurance policies. Depending on your home's location, some of these add-ons may be required. So, as you learn how to shop for homeowners insurance, don’t forget to tack on any add-ons you need.

Know what affects your policy rates

When you buy home insurance, there are a lot of factors that determine your policy rate. Your home’s age and current condition are two of the main factors. However, your financial history, credit score, the home’s location, and even the area's crime rate are considered.

Each provider weighs these factors differently, so shopping for home insurance will help you find the best rate for your unique situation.

Another factor that affects the price of your home insurance policy is the level of insurance you’re asking for. The three main options are: 

• Actual cash value (or ACV) in insurance means that your insurer will reimburse you for replacing your property or items with depreciation factored in. 
• Replacement cost takes away the depreciation deduction and offers full coverage up to the amount you paid for the item. 
• Extended replacement cost takes that protection a step further, covering up to 20% or more of the actual cost to repair or replace something. Though rates do increase with more coverage, you may find it helpful if you want to update things as you rebuild or if prices for materials increase.

Ultimately, the level of coverage you choose (and your accompanying rates) are mostly up to your discretion. While it’s not a good idea to purchase more home insurance than you can afford, you also want to make sure you’re not on the hook for expensive out-of-pocket repairs if the worst happens.

🤔 Did you know? By default, the dwelling coverage portion of your home insurance policy usually has replacement cost coverage. But your personal property coverage may come with ACV coverage by default with the option to upgrade to replacement cost for more protection.

Get the information you need for buying home insurance beforehand

Once you understand what influences policy rates, the next step in getting home insurance is gathering your information. Similar to putting an offer on a home, the timeline for buying a policy can be pretty tight. Especially if you’re buying home insurance for the first time, your mortgage lender will need proof of coverage before approving your loan. You can speed up the process by collecting all the necessary information before shopping.

First, you’ll need to provide some personal information (that you probably already have on hand). This may include: 

• Social Security Number (This isn’t required by Hippo, but can be for other insurers.)
• Birthdate
• Current and past employer information
• Previous addresses
• Number of kids
• Number of pets and their breeds
• Any high-risk items on your property (e.g., trampoline or pool)

You’ll also need to supply information about your home itself:

• The home's address
• Age of the home, roof, AC system and the pipes. (At Hippo, we backfill this info for you from trusted public data sources. Just another way we make your life easier!)
• Any requirements made by your lender pending approval

If you’re not planning to use the home as your primary residence (or if you plan to operate a business out of it), let your insurance agent know. In these cases, you may need a different type of policy, such as vacant home insurance or landlord insurance. These are priced differently and offer different coverages than traditional homeowners insurance.

Know what to look for in an insurance provider

Another key step in getting homeowners insurance is picking the right provider. With the right company in your corner, you could have lower annual premiums and fewer headaches when you file a claim. 

Whether you do research on your own or go through an insurance broker, it’s a good idea to get a few different quotes to see how major companies compare.

As you compare options, look beyond the overall price. Consider factors like:

• Customer service ratings
• Coverage options, deductibles, and add-ons (and their costs)
• Potential discounts
• Customer retention rates

These factors will not only give you an idea of how happy current customers are with the insurer’s service but will also help you avoid signing an overpriced or inadequate policy.

Many insurers now operate primarily online, so you shouldn’t have to visit an agency office to purchase homeowners insurance unless you want to. Plus, many providers offer discounts for purchasing your policy online and have a team of agents who offer the same level of customer service you’d expect anywhere else.

⚡ Expert tip: Before you buy home insurance, research the financial strength of your top choices using ratings from companies like A.M. Best, Fitch, Kroll Bond Rating Agency, Moody's, and Standard and Poor's. This will help you choose a stable provider that can deliver on its promises.

Mistakes to avoid when buying homeowners insurance

Now that you know how to shop for home insurance, let’s talk about some easy mistakes to avoid that could cost you later:

• Not getting enough coverage. Make sure you have enough insurance to fully replace your home and belongings if something bad happens. Skimping on coverage might save you money now, but it could leave you in a tough spot later.
• Focusing only on price. Saving money on insurance is important, but don't just go with the cheapest option. Look for a policy that gives you the right coverage at a fair price.
• Forgetting about extra coverage. If you have high-priced personal belongings or live in an area with floods, earthquakes, or other risks, you might need extra coverage. Don't assume your standard policy will cover everything.
• Not updating your policy. As you make changes to your home (like renovations), let your insurance company know. This way, you'll have the right coverage if you need to make a claim.

How much does homeowners insurance cost?

How much homeowners insurance costs varies greatly depending on where you live and other factors. 

On average, homeowners insurance in the U.S. costs about $2,377 per year. But that number can be higher or lower based on things like:

• Where you live. States with more natural disasters (like Florida and Texas) have higher rates than states with fewer disasters (like Vermont and Maine).
• Your home's age and square footage. Older and bigger homes cost more to insure because they're more expensive to replace.
• Your roof's age and quality. An old or weak roof can lead to higher rates because it's more likely to cause problems.
• Your credit score. A lower credit score could mean a higher insurance score, which can raise your rates.
• How close you are to a fire station. The farther away you are, the more you might pay.
• Other property risks. Things like pools and trampolines can make your liability insurance cost more.

Remember, your homeowners insurance covers your home, other structures, personal belongings, and personal liability for injuries. So, while the price might seem high, it’s more than just physical house insurance.

Save on your homeowners insurance policy

Home insurance costs are often a top concern when shopping for a policy. Luckily, many insurance companies offer discounts and additional benefits to help you save money and boost customer retention. 

When purchasing homeowners insurance, consider taking the following steps to save money:

• Bundle your policies. One question to ask when buying home insurance is if the company offers any discounts. For instance, insuring your home and car with the same company can often lead to a substantial home insurance discount.
• Install smart home devices and security systems. Some companies (hint: Hippo) will offer discounts if you install smart home devices or other security systems. Not only do these boost your home’s value, but they also help keep you safer by alerting you to potential issues before they get bigger. 
• Take advantage of home maintenance service discounts. Other insurance companies offer discounts on home maintenance services for their customers, which can help save you money should something break in your home.

It may take some time to find the right homeowners insurance policy if your goal is to save money, but that’s okay. Shop around, look for discounts, review your insurance binder when you get a new policy, and keep your policy up-to-date once it’s active. 

Still have questions?

Have any lingering questions on how to get home insurance easily? Check out our homeowners insurance buyers guide or explore these popular questions to ask when buying a policy. 

Is it worth shopping around for home insurance?

If you don’t want to overpay for a policy, shopping for home insurance is absolutely worth it. You won’t know if your current premiums are expensive or not unless you compare them to insurance quotes from other providers in your area. It may take longer to get homeowners insurance when you shop around, but it can potentially save you hundreds of dollars on premiums.

Can I switch home insurance anytime?

Yes, you can start shopping for home insurance anytime and switch providers whenever you want. But it's best to wait until your current policy is about to end so you don't have to pay potential fees for canceling early.

Is it normal for home insurance to increase every year?

Don’t be alarmed if your home insurance premiums increase year to year. This is totally normal and can be a result of inflation, rising construction costs, natural disasters, and other factors. But if you notice a big jump in premiums, it may be a sign to start shopping for home insurance to see if you can save money with another provider. (You can get a home insurance quote with Hippo in as little as 60 seconds.)

Why do home insurance companies drop you?

A home insurance company may drop you if it determines your property poses too high of a risk, such as if you've filed multiple claims or if your home's condition has deteriorated. It may also cancel your policy if you fail to pay your premiums on time or if you've falsified information on your application. In some cases, a home insurance company may drop you if they’ve simplified closed up shop and stopped serving your area. If any of these happen, you may be forced to start shopping for homeowners insurance again.

How difficult is it to get homeowners insurance after being dropped?

If you’ve been dropped from home insurance, insurers may consider you a high-risk customer and be reluctant to offer you coverage—even if you were dropped for reasons totally outside of your control. If you’re struggling to get a policy, the best way to shop for homeowners insurance is to look into your state’s Fair Access to Insurance Requirements (FAIR) plan. FAIR plans are specifically for high-risk homeowners who have been denied coverage elsewhere.

Can you cancel homeowners insurance at any time?

Yes, you can cancel your homeowners insurance whenever you want. But remember, if you have a mortgage, your lender will require you to have insurance. If you cancel without getting a new policy, your lender might buy insurance for you and charge you for it, which is usually more expensive than getting your own policy.