First-Time Homeowners Insurance
- Coverage basics: Understand what first-time buyer insurance actually protects.
- Cost insights: See average prices in your area by ZIP code.
- Preparation tips: Know which documents you’ll need before you apply.
When you’re ready, you can compare real quotes side by side to choose the policy that fits your home and budget.
What first-time homebuyers should know about insurance
Buying your first home is exciting—but it also means protecting your biggest investment. Home insurance helps cover repairs after unexpected damage and is usually required by your mortgage lender.
Here are a few quick things to know up front:
- Cost: Average price is about $2,802 per year.
- Protection: Covers your home, belongings, and liability.
- Shopping smart: Compare quotes to balance price, service, and coverage.
- Insurers: Liberty Mutual, Progressive, and American Family often offer affordable, reliable choices.
This guide will walk you through what home insurance covers, how much it costs, and how to choose the right policy so you can close with confidence.
How to Read a Homeowners Insurance Policy | The Zebra
Master the essentials of your homeowners insurance policy, learn how to interpret the declaration page, identify coverage limits & recognize exclusions.
What you need to get a homeowners insurance quote
We’ll outline below the key information you need to get home insurance quotes. Learn more in our in-depth guide to homeowners insurance.
Your address helps insurers pull basic information about your home. They’ll also consider factors like distance from a fire station or hydrant and regional risks such as floods, wildfires, or hurricanes.
Insurers review your credit record and prior claims through your CLUE report and a soft credit check. Being aware of your history up front can help you understand how it may affect your premium.
Fire alarms, sprinklers, and security systems may qualify you for discounts and lower rates.
Insurers often factor in the age and condition of your roof. While this may be pre-filled with your address, it’s good to know the details.
Most quote tools explain coverage types, but you’ll want to consider your own situation. Think about how much liability and personal property protection you need. For high-value items like jewelry, watches, or art, you may need special endorsements.
“Service line coverage is usually an optional endorsement, but it’s one I recommend adding to every policy. The city might fix the issue in the street, but if the damage affects your property — like your yard or underground pipes — you're on your own without this coverage.”
-Johnny Hawkins, Licensed Insurance Agent and Manager at The Zebra
How much does home insurance cost?
The price of home insurance depends on your location, the details of your home, and your personal rating factors. Using our methodology, we analyzed rates from top carriers across the U.S. These numbers represent rough averages — your actual rate may be higher or lower depending on your coverage and where you live.
Our data shows the average price is about $2,802 per year.
Many mortgage lenders pay your premium through an escrow account, so you may not think about it as often as a monthly car insurance bill. To make costs easier to compare, we’ve listed both the annual and monthly averages below.
Updating data...
| Company | Avg. Annual Premium | Avg. Monthly Premium |
|---|---|---|
| National General | $1,399 | $117 |
| AIG | $1,753 | $146 |
| State Farm | $2,269 | $189 |
| Chubb | $2,295 | $191 |
| USAA | $2,515 | $210 |
| Allstate | $2,669 | $222 |
| Nationwide | $2,762 | $230 |
| Auto-Owners | $3,011 | $251 |
| Erie | $3,296 | $275 |
| Farmers | $3,424 | $285 |
| American Family | $4,182 | $349 |
| Travelers | $8,365 | $697 |
Source: The Zebra
The Zebra’s Dynamic Insurance Rating Tool data methodology
The Zebra’s Dynamic Insurance Rating Tool for home and auto insurance rates utilizes the latest ZIP code-level rate filings from across the U.S., sourced from Quadrant Information Services and S&P Global. These filings, typically updated annually or biennially by insurers, are verified through Quadrant’s QA process and then integrated into The Zebra’s estimator.
The displayed rates are based on a dynamic home and auto profile designed to reflect the content of the page. This profile is tailored to match specific factors such as age, location, and coverage level, which are adjusted based on the page content to show how these variables can impact premiums.
For a comprehensive understanding, see our detailed methodology.
Insuring your first home
Now that we’ve outlined what information you need to get a home insurance quote, let’s detail some key steps and takeaways to keep in mind as a first-time buyer.
Now that you know what information you’ll need for a quote, it’s important to think about what matters most when choosing your first home insurance policy.
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Prioritize claims satisfaction: After a major loss, the last thing you want is an insurer that delays or denies coverage. Checking claims satisfaction ratings can give you confidence that your company will come through when you need it.
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Where to look: Independent sources like J.D. Power, the NAIC (National Association of Insurance Commissioners), AM Best, and Trustpilot publish data and reviews on how insurers handle claims and customer service.
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Who scores well: In J.D. Power’s latest rankings, companies such as Chubb, Amica, and The Hartford earned top marks for claims satisfaction. These insurers may cost more than budget-friendly carriers like Auto-Owners or Nationwide, but they often provide greater peace of mind.[1]
USAA often earns top ranks on customer surveys, including claims satisfaction. They also often have the lowest prices. However, this reputable insurance company is only available for military members and their families.
Nationwide is a relatively affordable option for many homeowners and has quality rankings from J.D. Power. They're also available in 46 states, so your likelihood of availability is good.
Erie is a regional carrier and only offers policies in 12 states (and Washington, D.C.), but has a sterling reputation in those locations. If you reside in a Mid-Atlantic state, it's worth getting a quote from Erie.
Your home is one of the biggest financial investments you’ll ever make. While home insurance costs far less than the price of your house, it’s not the place to trim your budget.
If you reduce coverage just to save money, you could face serious gaps. In the event of a catastrophic loss — such as a wildfire, tornado, or total loss — underinsuring your home could leave you with a significant financial shortfall. The right coverage ensures you can rebuild and recover without unnecessary stress.
Focus on what’s covered—and what’s not. Most policies protect against specific perils but may leave out others unless you add extra coverage through an endorsement.
Also, know that dwelling coverage is based on your home’s replacement cost, not its market value. This is the amount it would take to rebuild your home after a covered loss, not what you paid for it. That number matters, especially if your mortgage lender requires a specific coverage amount. Some insurers may not approve higher limits, so review your policy details early.
Your dwelling coverage should reflect what it costs to rebuild—not your home’s market price. Check your replacement cost and confirm that your insurance company and lender are on the same page before closing.
If you live in an area prone to natural disasters, it’s unlikely you will have insurance coverage for these perils. Fooding events will not be covered by your homeowners insurance. If your home is located near the coast, you may be required to purchase flood insurance through FEMA's National Flood Insurance Program.
Other natural disasters include earthquakes (usually a separate endorsement), tornadoes, wildfires, mudslides, hurricanes, and sinkholes. If you live in an area prone to these events, consult your insurance company regarding the best course of action.
Coverage may be limited based on your location. For example, mudslide and landslide coverage is not available in many areas of California. Earthquake coverage is an optional endorsement in most states, but can be purchased through the CA Earthquake Authority for state residents. This coverage can sometimes be obtained through a Difference in Conditions policy.
Most home insurance policies place sub-limits of liability on certain valuables. That means coverage is capped for items like jewelry, firearms, or fine art, regardless of your overall personal property limit.
If you own higher-value belongings, you may want to add:
- A personal property endorsement to raise limits for an entire category (like all jewelry).
- A scheduled personal property endorsement to cover a single item, such as an engagement ring. This usually requires an appraisal but offers the strongest protection.
See the chart below for common categories and typical maximum reimbursement amounts.
| Sub-limit | Property | Limitations | Recommended Upgrade |
|---|---|---|---|
| $200 | Money, gold, coins | All perils | Not typically insurable beyond standard limit |
| $1,500 | Jewelry, watches, furs | Theft-only | Schedule items with appraisals |
| $1,500 | Watercraft, trailers | Theft-only | Consider separate watercraft insurance |
| $2,500 | Firearms | All perils | Schedule high-value or collectible firearms |
| $2,500 | Silverware | All perils | Schedule for full value if collection is large |
| $2,500 | Business property (on-premises) | On-premises only | Add business property endorsement |
| $500 | Business property (off-premises) | Off-premises only | Add home business endorsement or commercial policy |
| $1,000–$2,500 | Fine art | Typically limited to theft-only | Add scheduled personal property or fine art rider |
Most major insurers offer multiple products — like home, auto, renters, and life insurance. Bundling policies with the same company can lower your premiums and simplify your insurance.
Benefits include:
- Discounts on each policy
- One point of contact
- Easier billing and claims
Once you know the coverage you need, shop around. Compare quotes from multiple insurers, review customer feedback, and weigh the premiums. It may take some effort up front, but it’s far easier than being stuck with the wrong provider when you need to file a claim.
Find homeowners insurance in just a few minutes online.
How to save on home insurance
Like auto insurance, home insurance comes with a variety of discounts that can help lower your premium. The most common is bundling — combining your home and auto policies with the same insurer. If you’re happy with your current auto provider, it’s worth getting a homeowners quote from them and asking about a bundle discount.
Keep in mind that discounts and eligibility vary by company and by your personal factors. Always compare coverage details side by side to make sure you’re getting the best value — not just the lowest price.
Best Home and Auto Insurance Quotes
Bundling can be a great way to save on insurance. Learn more about how to save by bundling your home and auto policies with one insurance company.
AAA (Auto Club), State Farm and Allstate tend to offer the biggest savings when you combine your house with your auto insurance.
Also, your new house may have some features that could save you money on insurance. Check to see if your place has any of the following, then ask your insurer if this can help you save:
- Security systems or cameras
- Water leak detection
- Fire safety features
- New or renovated home
- Green (energy-efficient) home
- New roof (or specific roof type)
- New construction home
- Veteran or senior discounts
Homebuyer programs and how they help
Buying a home can feel out of reach, but state and federal programs exist to make it easier—especially for first-time buyers with low or moderate incomes. These programs can help with:
- Down payments
- Closing costs
- Affordable loans
- Competitive interest rates
Many options are offered through the U.S. Department of Housing and Urban Development (HUD) and other agencies. Some provide grants, while others offer low-interest loans to help eligible buyers become homeowners. One example is the FHA loan program, which allows qualified buyers to put as little as 3.5% down.
While not all programs are income-based, many are designed to support average- and lower-income households.[2] Because government policies change frequently, it’s important to check the current availability of these programs in 2026 before making decisions.[3]
Insider knowledge, trusted guidance.
Save on insurance for your new house.
First-time homebuyer FAQs:
Widespread Price Increases, Extreme Weather Events and Long Repair Cycle Times Strain Customer Satisfaction with Homeowners Insurance Claims. J.D. Power
HUD Programs. US Dept. of HUD
Congress Passes and President Trump Signs into Law Year-Long Stopgap Funding. NLIHC
Government-backed home loans and mortgage assistance. USA.gov
Home Buyer Programs by State. HSH
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About The Zebra
The Zebra is not an insurance company. We publish data-backed, expert-reviewed resources to help consumers make more informed insurance decisions.
- The Zebra’s insurance content is written and reviewed for accuracy by licensed insurance agents.
- The Zebra’s insurance editorial content is not subject to review or alteration by insurance companies or partners.
- The Zebra’s editorial team operates independently of the company’s partnerships and commercialization interests, publishing unbiased information for consumer benefit.
- The auto insurance rates published on The Zebra’s pages are based on a comprehensive analysis of car insurance pricing data, evaluating more than 83 million insurance rates from across the United States.