Home Insurance Guide 2026 — Compare Quotes, Coverage & Costs

You just got a home insurance quote and the number feels high. Is that normal? Here’s the honest answer: home insurance typically varies a lot by state, your home’s age and roof, and even recent storms in your area. This guide breaks down how home insurance works, what it should cover, how much people usually pay, and exactly how to compare quotes so you don’t overpay or end up underinsured.

The fastest way to see what you would actually pay is to compare quotes from 3–5 carriers. If you’re ready, you can start here: Compare home insurance quotes.

What is home insurance? (HO-1 to HO-8, with HO-3 explained)

Home insurance protects your house and finances when covered events happen—think fire, wind, theft, or a guest injury—by paying for repairs, replacing belongings, or defending you in a lawsuit. Your premium is what you pay for the policy. Your deductible is the amount you pay out of pocket before insurance pays for a covered claim.

Policy types are often labeled HO-1 through HO-8. Here’s what they generally mean:

• HO-1 (Basic Form): Very limited “named perils” coverage (only specific causes listed). Rarely sold today.
• HO-2 (Broad Form): More named perils coverage than HO-1 for the home and belongings, but still limited to listed causes.
• HO-3 (Special Form): The most common for owner-occupied homes. “Open perils” for the dwelling (your house)—meaning everything is covered unless excluded—and “named perils” for personal property (your stuff), unless you upgrade.
• HO-4 (Renters): Covers your belongings and liability (not the building).
• HO-5 (Comprehensive Form): Broader “open perils” for both dwelling and personal property with higher default limits. Usually costs more.
• HO-6 (Condo): Covers the interior of your unit, your belongings, and liability. The condo association’s master policy generally covers common areas and building structure.
• HO-7 (Mobile/Manufactured Home): Tailored to mobile and manufactured homes.
• HO-8 (Modified Coverage): For older or historic homes where replacement materials are hard to match. Often uses different valuation.

Key terms you’ll see:

• Named perils: You’re covered only for the specific causes of loss listed in the policy (e.g., fire, theft).
• Open perils: You’re covered for all causes except what the policy specifically excludes.
• Replacement cost value (RCV): Pays to replace with new items of similar kind and quality without subtracting depreciation.
• Actual cash value (ACV): Pays replacement cost minus depreciation (your item’s age/wear). Cheaper but smaller claim payouts.

Most homeowners carry an HO-3 because it balances coverage and price. If you have newer, higher-value belongings—or you just want fewer headaches when replacing items—ask about an HO-5 or adding endorsements (add-ons) that broaden personal property coverage to RCV.

What a typical home insurance policy covers

A standard homeowners policy has six core parts plus optional add-ons. Names vary by insurer, but coverage concepts are similar:

• Dwelling (Coverage A): Your house itself—walls, roof, floors, built-in appliances. This should be set to your home’s replacement cost (what it costs to rebuild today), not the market value. Underinsuring here is one of the most common and costly mistakes.

• Other Structures (Coverage B): Things not attached to the house—fences, sheds, detached garage. Typically 10% of Coverage A by default. You can adjust if you have more detached structures.

• Personal Property (Coverage C): Your belongings—furniture, clothes, electronics. Default limit is often 50%–70% of Coverage A, but you can set a different amount. Watch for sublimits—smaller caps inside your limit—for jewelry, firearms, silverware, cash, and collectibles. You can schedule items (list them individually) for higher limits and broader protection.

• Loss of Use/Additional Living Expense (Coverage D): Pays for temporary housing, meals, and extra costs if your home is unlivable after a covered loss. Keep receipts—this coverage typically reimburses the “additional” amount above normal spending.

• Personal Liability (Coverage E): If you’re legally responsible for someone else’s injury or property damage—say a guest falls on your steps—this helps pay legal defense and damages, up to your limit. Many homeowners carry $300,000–$500,000; consider a $1M umbrella policy if you have significant assets for extra protection.

• Medical Payments to Others (Coverage F): Small, no-fault payments for minor injuries to guests (e.g., a trip to urgent care), typically $1,000–$5,000.

Common endorsements (add-ons) worth considering:

• Water backup: Covers damage from a backed-up drain or sump pump overflow—usually excluded without this.
• Ordinance or law: Pays extra to bring your home up to current building code after a covered loss. Older homes often need this.
• Replacement cost on personal property: Upgrades Coverage C from ACV to RCV.
• Extended or guaranteed replacement cost: Adds a cushion above Coverage A if construction costs spike after a disaster.
• Service line coverage: Buried pipes/cables from the street to your home—repairs can be pricey without this.
• Equipment breakdown: Covers sudden failure of systems like HVAC from mechanical breakdown (distinct from wear and tear).

Major exclusions to know about:

• Flood: Not covered by standard home insurance. You can add a separate flood policy (NFIP or private). See flood insurance basics.
• Earthquake: Typically excluded; available as a separate policy or endorsement in many states.
• Wear and tear/maintenance: Roof deterioration, mold from long-term leaks, pest damage. Insurers expect you to maintain the home.
• Intentional loss and business activity: Losses tied to business operations at home may need special endorsements.

Tip: Ask how your roof is covered. Some policies use a “roof surface payment schedule” or ACV for older roofs, which can significantly reduce payouts. If possible, choose RCV on the roof.

How much does home insurance cost? Factors and typical ranges

No two homes are identical, and neither are premiums. Nationally, for an owner-occupied single-family home with around $300,000 in dwelling coverage, annual premiums often range from about $1,200 to $2,800, depending on state, home features, and deductible. In high-risk areas (coast, wildfire, severe hail), costs can be materially higher. Actual prices vary based on your situation and insurer underwriting.

What moves your premium up or down:

• Location: Distance to coast or wildfire zones, local fire protection (hydrant/station), neighborhood claim patterns.
• Home characteristics: Year built, square footage, roof age and material, construction type, alarms/sprinklers.
• Coverage amounts: Higher limits and broader endorsements cost more.
• Deductibles: Higher deductibles = lower premiums. Wind/hail or hurricane deductibles may be percentage-based in some states.
• Claims history: Prior claims at your address or by you personally can raise rates.
• Credit-based insurance score (where allowed): A measure derived from credit data that some insurers use to predict claim risk. Not used in every state.
• Pets, pools, and trampolines: Liability risk factors.
• Bundling: Combining home and auto can reduce premiums.

Real-world examples (illustrative only; your rates will differ):

• Ohio suburb, 2,000 sq. ft. 1995-built, $300,000 dwelling, $1,000 deductible, claim-free: Many quotes fall around $1,200–$1,900/year.
• Texas Panhandle hail zone, 2,400 sq. ft. 2010-built, $350,000 dwelling, $2,500 wind/hail deductible: Quotes may cluster around $1,800–$2,800, with meaningful variation by roof type.
• Florida coastal county, 1,800 sq. ft. 1978-built, $400,000 dwelling, 2% hurricane deductible: It’s common to see $3,500–$8,000+ depending on roof age and mitigation features.
• California wildland-urban interface area, $500,000 dwelling: Standard markets may be limited, with some homeowners using the state FAIR Plan plus a wraparound “difference-in-conditions” policy. Combined costs can run several thousand dollars.

If your quotes are way outside the local norm, it’s worth checking if your replacement cost estimate is too high, if your roof is rated ACV, or if a prior claim is still on record.

Step-by-step: How to compare home insurance quotes (and what to hold constant)

If you want apples-to-apples comparisons, you have to control the variables. Here’s the workflow I recommend.

1. Gather your home facts

• Full address, year built, square footage, construction type
• Roof age and material; any updates to roof, plumbing, electrical, HVAC
• Distance to fire hydrant and station (insurers often look for within 1,000 ft / 5 miles)
• Safety features: monitored alarm, smoke detectors, sprinkler system

2. Set your target Coverage A (dwelling) based on replacement cost

• Ask each insurer to run a replacement cost estimator and share the inputs. Question anything that seems off (e.g., 10-foot ceilings you don’t have).
• Hold Coverage A constant across quotes, with the same square footage and construction quality assumptions.

3. Choose consistent deductibles

• One all-perils deductible (e.g., $1,000 or $2,500), and if applicable, the same wind/hail or hurricane percentage (e.g., 2%).
• Keep them identical across quotes; different deductibles can swing price comparisons.

4. Match coverage options and endorsements

• Personal property valuation: ACV vs RCV—keep this the same across quotes.
• Water backup: same limit (e.g., $10,000 or $25,000).
• Ordinance or law: same percentage (e.g., 25% or 50% of Coverage A).
• Extended replacement cost: same cushion (e.g., +25%).
• Roof coverage: make sure all quotes use the same basis (RCV vs ACV; any payment schedules).

5. Set liability consistently

• A common benchmark is $300,000–$500,000; consider your assets and discuss with a licensed agent.

6. Ask these questions every time

• What’s excluded in this quote that I might expect to be included?
• Is my roof covered at replacement cost or actual cash value? Any cosmetic damage exclusions?
• Are there separate wind/hail or hurricane deductibles? Are they percentages or flat amounts?
• What are the sublimits for jewelry, firearms, electronics, bicycles, business property?
• How is water damage handled—sudden/accidental leaks vs. seepage over time?
• After a total loss, do I get extended replacement cost? How much?
• Is there a surcharge for prior claims, and when do they fall off?

7. Compare carrier quality, not just price

• Financial strength: Look for A- or better from A.M. Best (where available).
• Complaint trends: Your state DOI often publishes complaint indexes.
• Catastrophe response: Ask about local adjuster availability and average claim timelines.

Pro tip: Keep a one-page comparison sheet. If an insurer can’t or won’t match your constant variables, that tells you something.

CTA: Ready to see real numbers? The fastest way to estimate your cost is to compare quotes from 3–5 carriers. Start here: Compare home insurance quotes.

Ways to lower your home insurance premium

You don’t control the weather, but you can control quite a bit about pricing.

• Raise your deductible (the amount you pay before insurance kicks in): Moving from $1,000 to $2,500 can often reduce premiums 5%–20%, depending on the market. Only do this if you have an emergency fund.
• Bundle home and auto: Often 10%–25% savings combined, though it varies widely.
• Replace or fortify your roof: Newer roofs and impact-resistant shingles can reduce rates in hail-prone states. In hurricane zones, roof-to-wall connections and secondary water barriers can help.
• Install protective devices: Monitored burglar/fire alarms, water leak sensors with auto-shutoff, and sprinkler systems can earn credits.
• Update old systems: Replacing old knob-and-tube wiring, polybutylene plumbing, or outdated electrical panels can lower risk and open more carriers.
• Right-size coverage: Avoid overinsuring personal property; consider scheduling high-value items separately. Don’t cut Coverage A below realistic rebuild costs.
• Improve your credit profile (where allowed): Paying bills on time and reducing credit utilization can help your credit-based insurance score over time.
• Stay claim-wise: Fix small maintenance issues early. Frequent small claims can raise rates or limit your options.

Curious what discounts you might qualify for? See common options here: home insurance discounts.

State rules and regulatory tips

• No state law requires home insurance if you own your home outright, but lenders almost always require it if you have a mortgage.
• Percentage deductibles: In many coastal states, hurricanes come with a separate percentage deductible (e.g., 2% of Coverage A). Some inland states use separate wind/hail deductibles.
• Credit-based insurance scores: Allowed in many states and restricted in some. How they can be used varies. Check your state’s rules.
• Nonrenewals and rate changes: States set notice timelines and consumer rights. If you get a nonrenewal notice, contact your DOI quickly and explore FAIR Plan options.
• FAIR Plans and residual markets: High-risk areas may rely on state-backed options (last-resort coverage). You can often pair a FAIR Plan with a “difference-in-conditions” wrap policy for liability and additional perils.
• Claim handling timelines: Many states require insurers to acknowledge, investigate, and pay (or deny) claims within set timeframes after you submit required documents.

How to check your state’s Department of Insurance (DOI):

• Search “YourState Department of Insurance homeowners” to find official guidance.
• Look for complaint ratios, consumer guides, and disaster-specific resources.
• Many DOIs offer mediation after catastrophes.

We maintain state-by-state resources here: state insurance guides.

Filing a claim: timeline, documentation, and payout tips

When something goes wrong, the first hours matter.

What to do right away:

1. Protect people and prevent further damage: Shut off water, board up broken windows, tarps on the roof where safe. Keep receipts—these are usually covered as part of your claim.
2. Document everything: Take wide and close-up photos/videos of damage before cleanup. Make a dated inventory list of damaged items.
3. Notify your insurer promptly: Most policies require “prompt” notice. You’ll get a claim number and an adjuster assignment.

Typical claim timeline (varies by state and insurer):

• Within a few days: Adjuster contacts you, schedules inspection.
• 1–2 weeks: Initial estimate for covered damages; payment minus your deductible and any depreciation holdback if you have RCV.
• As repairs progress: If you have replacement cost, you may receive “recoverable depreciation” after you submit proof of completed repairs or receipts.

Documentation checklist:

• Photos/videos of damage and cause (if known)
• Inventory with model/serial numbers where possible
• Receipts or bank statements for big-ticket items
• Temporary repair and additional living expense receipts
• Contractor estimates and permits

Tips to improve outcomes:

• Ask whether you have RCV or ACV on the dwelling and roof. If RCV, clarify how to recover depreciation and deadlines.
• For large losses, consider a reputable local contractor familiar with insurance scope writing. Avoid signing over benefits or full control without understanding the contract.
• If you disagree with an estimate, request a reinspection and provide contractor quotes. Most policies include an appraisal process for disputes.
• Keep a claim diary with dates, names, and what was discussed.

Want to dig deeper? See our explainer on how home insurance claims work.

Get quotes and next steps

You’ll get a clearer picture of your actual price by comparing multiple offers side-by-side.

What to have ready for quotes:

• Address and basic home details (year built, square footage, stories)
• Roof age and material; last updates to roof/plumbing/electrical/HVAC
• Distance to hydrant and fire station (estimates are fine)
• Desired deductibles and any endorsements you want (water backup, RCV on personal property)
• Security and smart-home devices (monitored alarm, water shutoff)
• Prior insurance carrier and any claims in the past 3–5 years
• Pets, pool, trampoline, short-term rental activity (if any)

Ways to shop:

• Online comparison: Quick and convenient for a baseline. Start here: Compare home insurance quotes.
• Independent agents: Can pull quotes from multiple carriers and help you match coverage apples-to-apples.
• Direct carriers: If you already bundle auto, see what your current insurer offers and compare.

What to look for beyond price:

• Replacement cost accuracy and extended replacement cost buffer
• Roof coverage basis (RCV vs ACV) and any cosmetic exclusions
• Water damage specifics and water backup limits
• Liability limits and umbrella availability
• Insurer complaint trends and catastrophe response

A quick note: Every home and insurer is different. For personalized guidance—especially if you’re in a high-risk area—speak with a licensed agent who can review your home’s details and local market.

Next step: Spend 10 minutes and get at least three quotes with the same limits and deductibles. It’s the simplest way to see the real market for your home.

Additional resources:

• Understand common coverages: Home insurance coverage types
• Typical pricing by state: Home insurance rates
• Discounts checklist: Home insurance discounts
• State-by-state help: State insurance guides