Homeowners insurance is your safeguard against unforeseen losses. However, many feel they are overpaying for their policy, making comparing home insurance quotes a necessity. In this article, we simplify the process, guiding you through how to compare, pinpointing the essential information you need, and helping you select the appropriate coverage—making sure you're only paying for what you truly need.
A good place to begin is with your car insurance provider. This will allow you to bundle your policies and receive a discount. Keep in mind that this company won't always be your best or cheapest option, but it gives you a starting point.
Here are three steps to help you find the best homeowners coverage for your needs:
Now let's go over the steps with a little more detail so you can make the most educated decision when you're ready to shop.
There are three ways you can receive a home insurance quote.
Regardless of which method you choose, you'll need to have certain information handy to get homeowners insurance quotes.
Most homeowners insurance companies base their quotes on your home's replacement cost, which is the amount it would take to rebuild your home in case of a total loss. This value depends on labor and materials, not the real estate market or demand.
No need to stress about knowing the exact dollar amount of insurance you need. Many insurance companies, including insurance MGM, use your home's address to automatically suggest basic policy options. Some may even verify your replacement cost through a home inspection.
Your main decision is how you want your home and belongings covered. You've got options, ranging from basic to better to best, and the price varies between coverage levels. It's all about finding the coverage that suits you best, and we're here to help.
| Policy Options | Your Home Covered by: | Personal Property Covered by: |
|---|---|---|
| BASIC: HO-2 Broad Form | Named Perils | Named Perils |
| BETTER: HO-3 Special Form | Open Perils | Named Perils |
| BEST: HO-5 Comprehensive Form | Open Perils | Open Perils |
Definition: All the hazards and threats to your property that are covered will be explicitly listed on your policy.
Available in: HO-2 for dwelling and personal property; HO-3 for personal property.
Definition: All the hazards that are not covered will be listed.
Available in: HO-5 for both dwelling and personal property; HO-3 policy for dwelling only.
Whether you have an open peril or named peril policy, the following are never covered by homeowners insurance.
As we mentioned earlier, most home insurance policies will create your coverage amounts based on the replacement cost of your home. This means you might want to adjust your coverage slightly to better fit your individual needs. Take a look at our table below to see the standard breakdown of coverage most insurance companies default to.
We recommend thinking through a few questions to understand what (if any) modifications you should make to your home insurance quote.
| Coverage Type | What it Covers | Typical Limit of Coverage |
|---|---|---|
| Coverage A: Dwelling | Your house + attached garage | Varies |
| Coverage B: Other Structures | Any stand-alone structures — like a carport or tool shed — not attached to the home. | 10% of Dwelling Coverage |
| Coverage C: Personal Property | Coverage can be on a replacement cost or Actual Cash Value basis | 50% of Dwelling Coverage Limit |
| Coverage D: Loss of Use | Cover the cost of temporary relocation in the event the home is unlivable due to covered losses. | 20% of Dwelling Coverage Limit |
| Coverage E: Medical Payments | Covers medical costs incurred on the property by those not listed as residents of the household, regardless of fault. | Custom |
| Coverage F: Personal Liability | Covers the costs of another party's injuries as well as claims against an insured for property damage | Custom |
Depending on you and your home, the default coverages above might not be ample enough coverage. Those with valuable personal property should consider adding an endorsement. An endorsement is any change to an insurance policy — whether adding coverage or removing it.
If you have these items and their value is greater than the coverage limit, consider adding an endorsement.
"We recommend having liability limits equal to or greater than your household's net worth."
As far as personal liability and dwelling coverage, we recommend having liability limits equal to or greater than your household's net worth. This coverage is designed to protect your assets if you're ever sued. By setting this limit high, you can avoid exhausting your insurance coverage and having to forfeit assets to pay legal fees.
For your dwelling coverage, many insurance companies will give you coverage to a certain percentage — 100 to 150% of the replacement cost of your dwelling's value. As long as it's equal to or greater than 100%, you should be sufficiently covered.
As an independent insurance broker, we partner with top home and auto insurance companies across the US. It all begins with your ZIP code, which allows our tool to retrieve home insurance quotes from our partners, giving you the freedom to pick the best option without the usual hassle.
Only with Insurance MGM home insurance comparison tool can you:
And here's the best part – we respect your preferences. You won't receive any unsolicited messages or feel pressured to choose a home insurance quote that doesn't align with your needs. Plus, our services are 100% free to you.
Insurance MGM is rated 4.5 out of 5.0 based on 947 reviews.
Below is an example of personalized quotes you might see when using our comparison tool. Let's walk through how to determine which of these homeowners' quotes is best based on each company's coverage, reputation, price, and deductibles.
Real image of Insurance MGM product — individual results may vary.
Let's break down each option before we get started.
Now, we're ready to compare! We'll use three key steps to help you efficiently compare your options.
As you shop for homeowners insurance, cost is probably the first thing that will grab your attention. While it's important to stay within your budget, remember that the cheapest policy isn't necessarily the best one. If a quote is exceedingly low, make sure that it actually provides the coverage that you need.
However, we understand the need to save where possible — in our example, Nationwide offers the cheapest home insurance quote. You can also ask a potential insurer about any discounts they may offer for homeowners or certain homes (like a home with an alarm system).
Nationwide's policy was $39 cheaper than Mercury and $195 cheaper than Liberty Mutual.
We've gathered annual and monthly home insurance premiums from top companies for you to get an idea of what your rates might be. Remember that these rates are averages — you and your home's insurance premium will depend on several factors, including where you live, the average cost of building materials, claim history and even your credit score.
| Company | Avg. Annual Premium | Avg. Monthly Premium |
|---|---|---|
| Allstate | $1,561 | $130 |
| American Family | $1,764 | $147 |
| Amica Mutual | $2,843 | $237 |
| Farmers | $1,871 | $156 |
| Nationwide | $1,231 | $103 |
| State Farm | $1,484 | $124 |
| Travelers | $2,674 | $223 |
| USAA | $1,385 | $115 |
Source: Insurance MGM
When picking home insurance, we suggest you consider the insurer's reputation for responsive claims handling. Price matters, but don't make it the only focus. Your home is probably the most expensive asset you've got, so be sure to prioritize protection.
Nationwide's overall rating was higher than Mercury and Liberty Mutual.
Both Liberty Mutual and Nationwide have similar customer satisfaction ratings but Nationwide's financial strength and complaint score are better.
Note that Mercury is only available in a handful of states in the US and thus isn't nationally ranked by many third-party sources. In the states it is available, the National Association of Insurance Commissioners (NAIC) has Mercury rated as "Poor" in customer complaints.
To learn more about individual companies, you can look into third-party evaluations from JD Power, NAIC, Better Business Bureau, or your state's insurance department. Below are just a few of the top names in the business.
| Home Insurance Company | J.D. Power Customer Satisfaction Rating | A.M. Best Financial Strength Rating | NAIC Customer Complaint Score |
|---|---|---|---|
| State Farm | 4/5 | A++ | Very Good |
| Allstate | 3/5 | A+ | Good |
| USAA | 5/5 | A++ | Very Good |
| Liberty Mutual | 2/5 | A | Below Average |
| Farmers | 3/5 | A | Good |
| Travelers | 2/5 | A++ | Good |
| American Family | 3/5 | A | Good |
| Nationwide | 2/5 | A+ | Very Good |
| Chubb | 2/5 | A++ | Very Good |
| Erie | 5/5 | A+ | Very Good |
The HO-3 policy from Liberty Mutual isn't as good as the HO-5 offered by Nationwide or Mercury. Nationwide and Mercury's quote is based on the "best" policy because it covers both your home and personal belongings against anything except what is explicitly excluded.
Nationwide offers the best policy offering at the best rate.
Did you know that one of the key factors affecting your monthly homeowners insurance payment is your deductible? Increasing your deductible can often lead to a lower overall premium because your insurance company is shouldering less financial responsibility if you ever need to make a claim.
However, it's important to strike the right balance. Don't set your deductible too high, or you might find it challenging to meet in case you need to file a homeowners claim. Also, keep an eye out for any separate deductibles that may apply to specific situations like hurricanes or windstorms.
Home deductibles are deducted from your claim payout and are percentage or dollar-value-based.
In our example, Nationwide has the lowest deductible and the lowest premium.
In the example we've used to demonstrate different home insurance options you might see, Nationwide provides the best option. This is based on their reputation, coverage level, and price.
Of our options, Nationwide provided the broadest coverage by insuring both the home and its content under an Open Perils policy, while having the most consistent review scores. Furthermore, Nationwide had the lowest deductible with the cheapest total premium.
Keep in mind that this was just an example of shopping for home insurance, but we'd love to help you get your own personalized home insurance quotes!
Where you live is a big indicator of how much you will pay for home insurance. Each state has its own set of risk factors (such as wildfires, tornadoes, floods, or other natural disasters) that make home insurance state-specific.
Below we've listed average home insurance rates by state as well as each state's cheapest provider to help you get an idea of what you might pay.
| State | Avg. Annual Rate | Cheapest Provider | Cheapest Rate |
|---|---|---|---|
| Alabama | $1,947 | USAA | $1,452 |
| Alaska | $1,011 | USAA | $926 |
| Arizona | $1,410 | USAA | $815 |
| Arkansas | $2,143 | Farmers | $1,665 |
| California | $791 | Mercury | $564 |
| Colorado | $2,271 | American Family | $1,878 |
| Connecticut | $1,411 | State Farm | $896 |
| Delaware | $716 | Nationwide | $544 |
| Washington, D.C. | $940 | Allstate | $885 |
| Florida | $1,572 | State Farm | $1,261 |
| Georgia | $1,196 | State Farm | $250 |
| Hawaii | $349 | Allstate | $283 |
| Idaho | $1,034 | Farmers | $990 |
| Illinois | $1,673 | State Farm | $690 |
| Indiana | $1,343 | Erie | $961 |
| Iowa | $1,302 | Nationwide | $933 |
| Kansas | $2,862 | USAA | $1,984 |
| Kentucky | $2,001 | USAA | $1,099 |
| Louisiana | $2,037 | State Farm | $1,545 |
| Maine | $695 | State Farm | $876 |
| Maryland | $1,042 | Travelers | $796 |
| Massachusetts | $916 | Amica | $1,278 |
| Michigan | $1,098 | AAA | $567 |
| Minnesota | $1,411 | AAA | $1,167 |
| Mississippi | $1,929 | Allstate | $1,792 |
| Missouri | $2,185 | AAA | $1,544 |
| Montana | $2,074 | Foremost | $876 |
| Nebraska | $2,813 | USAA | $1,890 |
| Nevada | $841 | Farmers | $553 |
| New Hampshire | $722 | State Farm | $706 |
| New Jersey | $706 | Chubb | $661 |
| New Mexico | $1,203 | Foremost | $1,081 |
| New York | $980 | State Farm | $692 |
| North Carolina | $1,661 | Nationwide | $1,591 |
| North Dakota | $1,682 | AAA | $1,904 |
| Ohio | $979 | Erie | $747 |
| Oklahoma | $3,102 | Farmers | $2,676 |
| Oregon | $876 | State Farm | $760 |
| Pennsylvania | $1,004 | Erie | $565 |
| Rhode Island | $1,087 | Amica | $1,097 |
| South Carolina | $1,556 | Allstate | $1,139 |
| South Dakota | $2,004 | Farmers | $1,599 |
| Tennessee | $1,872 | Erie | $1,145 |
| Texas | $2,387 | State Farm | $2,719 |
| Utah | $740 | Farmers | $325 |
| Vermont | $593 | Allstate | $562 |
| Virginia | $1,294 | Erie | $885 |
| Washington | $878 | Allstate | $690 |
| West Virginia | $1,331 | USAA | $834 |
| Wisconsin | $876 | American Family | $1,020 |
| Wyoming | $1,164 | USAA | $641 |
Homeowners insurance can be overwhelming and complicated, so take a look at these frequently asked questions that you may also be wondering.
Nope — we’re not an insurance carrier. Insurance MGM is a comparison platform that lets you review offers from top-rated insurance companies all in one place. This helps you find the right policy for your needs without the hassle.
It only takes about five minutes. Just answer a few questions, and we’ll do the rest — comparing quotes from leading insurers. Once you’ve picked a plan you like, you can purchase it online or speak with one of our licensed insurance agents for assistance.
Yes. Every one of our independent insurance agents is fully licensed and authorized to offer policies from all major insurance providers. As your needs change, they’re here to help you adjust your coverage accordingly.
Great question. We earn commissions when you purchase a policy through one of our agents. If you request a quote, we notify the insurance provider — and instead of a thank-you note, they send us a commission. We also offer consolidation services: we act on your behalf to optimize your policies and potentially save you up to 30%. For this service, we charge a small fee ranging from 5% to 10% of your total insurance costs.
That’s totally up to you. You can choose to purchase your policy directly from the insurance provider, or you can buy it through Insurance MGM. Either way, the policy and coverage remain the same — just a different checkout process.
Absolutely. We’re real people who understand how important your privacy is. That’s why we promise never to sell your personal data to spammers or third-party marketers.
