How to Find the Best Home Insurance in 2023

How to shop homeowners insurance in 2023:

• How to buy homeowners insurance in 5 easy steps:
  • 1. Learn about how much Coverage you need
  • 2. Get familiar with home insurance policy terms
  • 3. Gather information about the home
  • 4. Compare different home insurance quotes
  • 5. Choose the policy that’s right for you

The best way to shop for homeowners insurance is to compare quotes from at least three insurance companies so that you're not missing out on better or more affordable coverage in your area. With BlueVest Pro, you can compare and buy home insurance in a matter of minutes. Just answer a few brief questions about your house, and we'll provide you with several policy options at a price point that suits your needs.

1. Learn about how much coverage you need.

When you get home insurance quotes, the coverage amounts listed are often estimates — not an exact calculation of how much coverage you’ll need. To make sure you’re being quoted for the right amount of coverage, consider getting a more accurate estimate of the following:

The replacement cost of your home: The amount of insurance on your house should be equal to its replacement cost — the amount it would cost to rebuild the home from the ground up after a disaster. Insurers often provide their own replacement cost estimate using online estimation tools, but for a more precise calculation, consider hiring a professional appraiser.

The total value of your personal belongings: You’ll want enough personal property coverage to cover the value of all of your stuff, like appliances, furniture, and electronics.

The total value of all of your assets: You should have enough personal liability coverage to cover your entire net worth in case you’re sued.

Your homeowners insurance coverage needs will also depend on your home’s location and the risks (wildfires, hurricanes, tornadoes) where you live. If you live in a high-risk coastal area or region that experiences frequent wildfires, your coverage needs will be different than if you lived somewhere with a more mild climate.

2. Get familiar with home insurance policy terms:

There are six types of coverages that are in every standard homeowners insurance policy. Understanding how you’re protected by each of the coverage types in a standard policy will be useful when comparing policies.

Dwelling: Covers physical damage to the structure of your home and any attached structures, like a garage or porch

Other structures: Covers physical damage to structures on your property that aren’t attached to the home itself, like a detached garage, guest house, or fencing around your property

Personal property: Covers damage or theft of personal belongings that you own, including furniture, clothes, jewelry, and electronics

Additional living expenses (ALE): If your home is severely damaged or destroyed by a covered loss, ALE can cover the cost of temporary lodging and relocation expenses while your house is being repaired or rebuilt

Personal liability: Covers you and your assets from expensive lawsuits if you’re ever held liable for someone else’s injury or property damage

Medical payments: Covers guests’ medical expenses if they’re injured on your property

You’ll also have to choose between three levels of coverage:

Actual cash value: The cheapest option, actual cash value reimburses you for the value of your property minus the cost of depreciation, or wear and tear. This leaves you paying more out of pocket when you file a claim.

Replacement cost value: Most insurers allow you to upgrade to replacement cost value coverage, which reimburses you for the value of your property at today’s prices. This provides larger reimbursements when you file a claim.

Extended replacement cost value: Another optional upgrade, extended replacement cost value coverage reimburses you for the cost to rebuild your home — even if it’s more than your policy limit. This protects you from construction material and labor costs that tend to skyrocket after a natural disaster.

3. Gather information about the home:

To get an accurate quote estimate, you’ll need to give the insurer information about yourself and the type of property you’re insuring.

Here’s some of what you’ll need to provide when you shop homeowners insurance policies.

• Your home’s square footage and roof type (like hip or gable)
• The heating type of your home’s appliances (gas or electric)
• The renovation history of your home
• Whether you have any pets, trampolines, or a pool
• Whether it's your primary or second home
• Whether you rent it out in the short or long term

The more details you give about your home, the more accurate your quote will be. If you’re simply swapping out policies, most of this information will be available on your old policy. Otherwise, you can find your home’s structural details by searching for your property on your county’s property appraiser website.

4. Compare different home insurance quotes:

The easiest way to buy homeowners insurance is through a marketplace like BlueVest Pro, where you can compare quotes across multiple companies in your area. Once you apply, a licensed expert will reach out with policy recommendations that match your coverage needs and budget. They’ll also nail down any home insurance discounts you qualify for.

We recommend paying close attention to quotes from any insurance companies you already have a relationship with, as they often offer lower rates for existing customers. So if you already have an auto or umbrella insurance policy with a specific carrier, you may get a bundling discount for signing up for home insurance with that same insurer.

Apart from the policy itself, you’ll also want to look into the insurance company’s background. Check to see if the company insuring your house is financially stable, read reviews, and check ratings with third-party sites like AM Best, J.D. Power, and Consumer Reports.

5. Choose the policy that’s right for you.

Once you’ve compared quotes, it’s time to select a policy and customize it to suit your coverage needs.

If you have a mortgage, ask your loan officer if the coverage in your policy meets the lender’s insurance requirements. Homeowners insurance doesn’t cover water damage caused by flooding, for example, so you may need to get separate flood insurance if you live in a high-risk flood zone.

There are also several optional home insurance endorsements that can be added to your policy for an additional cost.

Some of the most common endorsements are:

• Water backup coverage
• Appliance breakdown coverage
• Service line coverage
• Scheduled personal property coverage
• Extended replacement cost
• Guaranteed replacement cost
• Flood coverage
• Earthquake coverage