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How to Purchase Home Insurance 

Written by Alyssa DiCrasto

Reviewed by  Rob Deming

Last updated: February 26th, 2024

How to Purchase Home Insurance

Property insurance is a good investment for every homeowner. Home insurance protects the physical structure of your home, as well as your personal belongings, personal liabilities, and additional living expenses. All homeowners are susceptible to risk, and home insurance provides valuable protection against potential threats. 

The process of purchasing home insurance is pretty simple, but there are some things you should consider before you get a policy. In this article, we’ll explain how to buy home insurance, how to choose the right policy for your needs, and how to compare home insurance companies to find the best and most affordable policy for your situation. 

What things should I consider when buying home insurance?

Before you buy home insurance, there are a few things you should consider as you shop around. Here are some of the most important factors to keep in mind: 

  • Your location: Your location has a big impact on your home insurance needs. For example, if you live in an area that’s prone to flooding or earthquakes, you might need to purchase additional insurance policies or endorsements. If you live in a neighborhood with a high theft rate, you might want to choose higher limits for contents coverage in case of a break-in. 
  • The amount of coverage you need: Make sure to choose an appropriate amount of home insurance coverage based on the value of your home and personal items. In general, you should have enough coverage to rebuild your home from the ground up, and enough coverage to replace all the personal items you and your family members own. Creating a home inventory can help you estimate the value of your personal belongings. 
  • Your deductible: Your deductible is the amount of money you must pay out-of-pocket when you have an insured loss. Choosing a higher deductible will result in a lower monthly premium. However, it also means that you’ll receive a smaller settlement if you need to file a claim.  
  • The insurance company’s ratings and reviews: Before you buy home insurance, look at the insurer’s AM Best rating for financial strength and J.D. Power rating for customer satisfaction. You can also read customer reviews to see what current and past policyholders think about the company.  
  • What discounts are available: Most home insurance companies offer discounts which can help you get a lower premium. Check to see what discounts are available, and try to choose an insurer that offers multiple discounts you can take advantage of. 
  • Your budget: It’s also important to consider how much money you can comfortably afford to spend on home insurance each month. Getting quotes from multiple companies will help you find the cheapest rate for the amount of coverage you want.  

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How to buy home insurance

Purchasing home insurance is a relatively straightforward process. Most insurance companies allow you to buy home insurance online, which makes it even easier. 

The first step is to choose an insurance company that fits your personal needs. Then, start the process of getting a quote. If the insurance company doesn’t allow you to get a quote online, call an agent and get a quote over the phone. 

During the quote process, you’ll need to provide some personal details and your policy preferences, like coverage limits and your deductible. You will also get the option to add endorsements if you want extra protection. 

 You might also be asked about information that could earn you a discount, like how close your house is to the nearest fire station, and if you have a home security system installed. If you want to bundle your home insurance with another policy, like car insurance, you can also apply for a bundled quote.  

 Once the application is complete, you’ll see your estimated rate. If you’re satisfied with the quote, you can typically purchase the policy online.  

You’ll need to pay the first month’s premium before your coverage will go into effect. If you choose to pay your annual premium in full, you can usually save some money. 

How to compare home insurance companies

Now that you understand how to get home insurance, it’s important to know how to compare insurance companies. Aim to compare at least three or four companies to find the best one for your personal needs. 

You should compare home insurance providers based on important categories, like coverage types, discounts, customer reviews, and third-party ratings. You might also consider factors like whether the company has a mobile app, and what customer service channels they offer, like live chat or 24/7 phone support. 

When shopping for home insurance, cost is another important consideration. Keep in mind that the first home insurance quote you receive might not be the best rate you can find. Comparing quotes from multiple companies can help you get the most affordable coverage. Take our short quiz to see how much you can expect to pay for home insurance at the top insurance companies in your area. 

FAQs

Is it a good idea to buy home insurance?

Home insurance is an excellent investment for any homeowner. It’s also required by many mortgage lenders. Home insurance provides valuable financial protection in case something happens to the physical structure of your home or personal belongings. Without home insurance, you’re responsible for repairing or rebuilding your home entirely out-of-pocket.

What is home insurance?

Home insurance helps pay to repair or replace your home and personal items after covered losses, like fires, windstorms, vandalism, theft, and sudden and accidental water damage. It also includes medical payments insurance, personal liability insurance, and loss of use insurance.

Why is it so hard to get home insurance?

Not all homeowners have a hard time getting home insurance. However, it can be more difficult to get home insurance depending on where you live. For example, some companies won’t insure houses in areas that experience frequent hurricanes or flooding. If you’re having a hard time getting home insurance, there are alternatives to private coverage, such as your state’s Fair Access to Insurance Requirement (FAIR) plan.

About Rate Retriever

At Rate Retriever, our mission is to make the way you shop for insurance transparent and fair through user-friendly tools that respect your privacy and deliver reliable, comprehensive results 

So we took everything we hated about comparing insurance quotes online – the spam, the long questionnaires, the limited choices, the inaccuracy of quote prices – and threw it out the window, favoring a short form that more accurately estimates what you’ll pay at each of the top insurance providers near you. 

Rate Retriever is an independent company that is not owned by an insurance provider, nor do we provide insurance ourselves. This independence allows us to be your free and impartial insurance research tool, helping you make the best decisions for your insurance needs.  

We may earn a commission when you click one of the links or call one of the providers listed on our site; however, we do not allow our partnerships to influence which information we provide. 

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