Home insurance (also called homeowners insurance) covers your dwelling, personal property, and liability if someone is injured on your property. It also covers additional living expenses if your home becomes uninhabitable due to a covered event.
Mortgage lenders require home insurance. Even if you own outright, it's financially prudent — replacing a home costs hundreds of thousands of dollars.
Providers we compare
Premiums shown are national averages for a $300,000 home with $1,000 deductible. Actual cost varies by location, construction type, age of home, claims history, and coverage limits.
| Provider | Avg Premium | Key Feature | Best For |
|---|---|---|---|
| Amica | $1,400/yr | Top customer satisfaction (J.D. Power) | Service quality over price |
| State Farm | $1,500/yr | Multi-policy discounts | Bundling home + auto |
| Allstate | $1,650/yr | Claim-free rewards | Long-term homeowners |
| USAA | $1,200/yr | Military-specific benefits | Active/veteran military families |
| Lemonade | $1,350/yr | Instant quotes + fast claims | Digital-first homeowners |
How to choose home insurance
1. Understand coverage types (HO-1 through HO-8)
Most homeowners buy HO-3 (special form), which covers the dwelling against all perils except those explicitly excluded (flood, earthquake, war).
2. Decide on replacement cost vs. actual cash value
Replacement cost reimburses you for rebuilding at today's prices. Actual cash value deducts depreciation. Always choose replacement cost.
3. Determine dwelling coverage amount
Don't insure for the home's market value. Insure for the cost to rebuild (often higher in high-land-cost areas, lower in high-land-value areas).
4. Add riders for valuables
Standard policies cap jewelry, art, and collectibles at $1,500-$2,500. If you own expensive items, add a scheduled personal property endorsement.
5. Consider flood and earthquake coverage separately
Standard home insurance excludes flood and earthquake. If you're in a high-risk area, buy separate policies (flood via NFIP or private insurers, earthquake via specialty carriers).
FAQ
What's the difference between HO-3 and HO-5?
HO-3 covers the dwelling on an "all-risk" basis but personal property on a "named-perils" basis. HO-5 covers both on an all-risk basis (broader but more expensive).
Does home insurance cover foundation issues?
Not typically. Foundation problems due to settling, soil issues, or poor construction are usually excluded. Only sudden events (like a burst pipe undermining the foundation) might be covered.
What if my home is underinsured?
If you insure for less than 80% of replacement cost, most policies apply a coinsurance penalty — they'll only pay a fraction of any claim, even small ones.
How do I lower my premium?
Raise your deductible, install security/smoke alarms, bundle with auto, pay annually instead of monthly, and maintain good credit (in states where it's allowed).
Can I get home insurance with a trampoline?
Some insurers exclude trampolines due to injury liability. Others allow them with a liability waiver. Shop around if you have recreational equipment.
Note: This comparison is for informational purposes only. Coverage and pricing vary by state, home characteristics, and individual circumstances. Always consult with a licensed insurance agent before purchasing.