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How to compare homeowners insurance quotes
Quotes compare only when limits, deductibles and roof terms match. Fix the specification, spot the hidden differences and weigh price against the company.
Two homeowners quotes can only be compared when they describe the same policy: the same dwelling limit, the same deductibles (including any separate wind, hail or hurricane deductible), the same way of paying for the roof and your belongings, the same liability limit and the same endorsements. Fix those first, give every insurer the same facts about your house, get each quote in writing, and only then look at price. The cheapest quote is frequently the one that covers the least.
The NAIC's Consumer's Guide to Home Insurance (2022 edition) says it plainly: when you get quotes, ask for the same coverages and limits, give the same information to each agent or company, and get the rate quotes and key information in writing.
Write down the specification before you ask
Decide the coverage you want, then hand the same list to every agent or website. Most price differences between quotes trace back to one of these items.
| Item | Why quotes differ here | What to ask for |
|---|---|---|
| Coverage A (dwelling) limit | Insurers run their own rebuild estimates, and some set the limit automatically | The limit you chose from your rebuild estimate (How much dwelling coverage do I need?) |
| Roof settlement | Replacement cost, actual cash value, or a payment schedule that pays less as the roof ages | Replacement cost on the roof, or the schedule in writing |
| Personal property basis | Replacement cost costs more than actual cash value | State which one the quote uses |
| All-other-perils deductible | A $2,500 deductible and a $1,000 deductible are priced very differently | One dollar amount for every quote |
| Wind, hail or hurricane deductible | Often a percentage of Coverage A, which turns into different dollar amounts on different limits | The dollar figure, not only the percentage (hurricane and percentage deductible calculator) |
| Liability and medical payments | Standard limits differ, and the price step between liability limits is usually modest | The same limit on each (how much liability coverage should a homeowner carry?) |
| Extended replacement cost and ordinance or law coverage | Offered as a percentage on top of Coverage A, and not offered at all by some | The percentages, listed on the quote |
| water backup coverage | Often optional, with limits from a few thousand dollars up | Whether it is included and the limit |
| Cosmetic damage exclusion | Some hail-area policies exclude cosmetic roof damage | Whether it is on the policy |
The homeowners quote comparison worksheet has a column for each of these. Use it, or copy the rows into a spreadsheet.
Give every insurer the same facts
An insurer prices what you tell it, and then re-prices what it finds. If one quote assumes a 6-year-old roof and another assumes 18 years, the prices are not comparable. Use the same roof age, update dates, claims history and occupancy on every request. If you leave a claim off one application, that quote will rise after the insurer pulls your CLUE report (CLUE reports: how claims history follows you and your house). The NAIC guide also notes that in many states insurers use credit history to decide whether to sell you a policy and what to charge, so a quote can reflect it; see insurance scores: how credit affects home insurance.
Ask each seller what could change the final premium. A quote that is "subject to inspection" or "subject to underwriting review" is an estimate, and a roof photo or a claims report can move it.
A hypothetical comparison
Say your rebuild estimate is $400,000, and you receive three quotes. The figures below are invented to show the method, not real market prices.
| Quote A | Quote B | Quote C | |
|---|---|---|---|
| Annual premium | $2,300 | $2,550 | $2,900 |
| Dwelling limit | $340,000 | $400,000 | $400,000 |
| Roof | Actual cash value | Replacement cost | Replacement cost |
| Wind/hail deductible | 2% ($6,800) | 1% ($4,000) | 1% ($4,000) |
| Ordinance or law | 10% | 10% | 25% |
| Water backup | Not included | $5,000 | $10,000 |
| Monthly fee | None | None | $4 |
Quote A is $250 cheaper than B for a reason: it insures $60,000 less house than your estimate, pays for the roof with depreciation subtracted, carries a $2,800 larger wind deductible and has no water backup. On a total loss, A leaves you $60,000 short before anything else. Before dropping B, go back to A and ask for $400,000, a replacement cost roof and a $5,000 backup endorsement. If A can quote that for $2,600, B wins. If A cannot offer a replacement cost roof on your roof's age, you have learned something important about A.
Quote C costs $350 more than B for larger ordinance or law and water backup limits. Whether those are worth $350 depends on your house: an older home in a city with strict building codes may need the 25%. Still, C is not obviously "better"; it is a different policy at a different price.
Compare the price the right way
The premium on the quote summary is the beginning of the price.
- Billing. Pay-in-full prices and monthly prices can differ by a fee per installment (paying home insurance monthly vs annually). Compare either all annual or all monthly.
- Fees and surcharges. Look for policy fees, inspection fees and surcharges (installment fees, policy fees and surcharges on a homeowners policy).
- Discounts. Confirm which discounts are in the quote and which require proof later, such as an alarm certificate or a roof invoice (homeowners insurance discounts to ask about). A discount that depends on bundling auto drops away if you do not move the auto policy (bundling home and auto insurance: when it pays).
- Renewal trajectory. First-year prices and renewal prices are different numbers, and a policy that is cheap at the start can climb quickly. You cannot see the future premium on a quote, but you can ask how often the company has filed rate increases in your state and look at its filings; see shopping your policy at renewal: how often and how.
Compare the companies, not only the policies
When two quotes are close, the company decides. Check each finalist's financial strength rating (Financial strength ratings: AM Best, S&P, Moody's and Demotech), its record of complaints with the state (How to use the NAIC complaint index to compare home insurers), and any claims satisfaction results (What J.D. Power's home insurance studies measure). The compare home insurers side by side tool puts profile data side by side, and the NAIC reminds readers that not every insurer provides the same claims service. Be aware of the opposite mistake as well: a company with the best service rating is still a poor choice if its quote carries an ACV roof and you wanted replacement cost.
Your state may help. The NAIC's guide suggests checking whether your state insurance department publishes premium comparison guides. Texas, for example, runs HelpInsure.com, which shows sample rates, financial ratings and complaint records for some insurers, and TDI points users to an independent agent or insurer for actual quotes. California's Department of Insurance publishes a homeowners premium survey comparison tool on its website. These show sample rates, not your price, so use them to find candidates.
Check a quote before you accept it
- Ask for the draft declarations page rather than a summary, and compare it line by line with your specification. how to read a homeowners insurance quote explains the items.
- Confirm the quote is for the right address, the right year built and the right roof.
- Check the mortgagee, effective date and billing plan.
- Read the endorsements list. A promised coverage that is not listed is not on the policy.
- Ask in writing what happens if the insurer's inspection finds something, and whether the price is guaranteed until binding.
If you find a problem, ask the agent to correct it and reissue the quote. Do not accept a verbal assurance.
Key takeaways
- Compare only quotes with the same dwelling limit, deductibles, roof terms, liability limit and endorsements, and convert percentage deductibles to dollars.
- Give every insurer identical facts about the house, and ask what could change the premium after underwriting.
- A lower price usually comes from lower limits, thinner roof or contents terms or fewer endorsements; ask the cheaper insurer to requote at your specification.
- Compare billing, fees and discount conditions, not only the annual figure, and expect renewal prices to differ from year one.
- Break close ties with financial strength, complaint records and claims reputation, and read the draft declarations page before you bind.