How to Buy Homeowners Insurance

Learn how to compare quotes, choose the right coverage, and buy homeowners insurance with confidence.

Find the best rates without sacrificing protection
Understand what coverage you really need before you buy

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By Kristine Lee

Updated April 22, 2026

Reviewed By Beth Swanson

Edited By Renata Balasco

Homeowners insurance buyers' guide

A home is the most significant financial investment many people make. It can take years of dedicated saving and patience to find and purchase the home of your dreams. As such, insuring your home is a vital part of the home purchasing process.

In this article, we will outline the steps you should take when insuring your home, as well as homeowners insurance buying tips to consider.

Jump to

How to buy
Deductibles
Standard coverage
Additional coverages
FAQs

💡 Zebra Tip: Compare coverage, not just price

The best way to save on homeowners insurance is to compare quotes from multiple companies. But it's important to look at specific coverage, too, because the cheapest option today may end up costing you much more in the long run if you're underinsured.

How to buy homeowners insurance

Here are several important tips to keep in mind as you shop for home insurance:

1. Know the specifics of your home

You'll need to know the following details about your home in order to get homeowners insurance:

The replacement cost of your home
Your dwelling style (how many stories tall the structure is)
The year in which your home was built
Date of last property claim
Square footage
Garage size
Siding/exterior wall type
Roof age and type
HVAC
Fire safety information

Many major companies use your address to auto-populate your home’s information, but you should double-check this info is correct. It can impact your home insurance premiums and hinder your ability to file claims down the road.

2. Know what is — and is not — covered by your policy

Know the major perils excluded from homeowners insurance policies:

Damage to vacant dwellings
Wear and tear
Damage caused by major weather conditions
Government actions/war
Intentional damage

You may be able to purchase an endorsement to add coverage, but a basic homeowners insurance policy will not cover these circumstances.

3. Know how much coverage you need

Know how much coverage you need for your dwelling, personal property, liability, and any other circumstances. Once you need to file a claim, it's too late to add an endorsement or bump up your coverage levels.

4. Consider bundling and non-bundling options

If you have another insurance policy, consider bundling it with your home insurance. Most companies will give you a bundling discount for combining home and auto insurance. Bear in mind, every company’s insurance products are not ranked equally in terms of service and coverage options.

5. Weigh your options

It can be tedious, but comparing homeowners insurance policies is the best way to save and to find the best homeowners coverage. In fact, 84% of first-time homebuyers compared two or more quotes before settling on a policy.^[1] Unlike your auto insurance, it’s harder to lower your home insurance costs without drastically changing your coverage.

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First-Time Homeowners Insurance

Learn what info you need to get home insurance quotes, the steps to keep in mind and the average cost of insurance to kickstart the process of finding a policy.

How to choose a deductible

It’s important to choose a deductible that fits your budget. A deductible is the amount you pay out of pocket before insurance covers the rest of a claim. Most range from $500 to $2,500, depending on your policy and coverage type. For example, you may have a flat dollar deductible for your dwelling coverage, but a separate one for certain risks, such as wind or hail damage.

In general, higher deductibles mean lower premiums, while lower deductibles result in higher premiums. For instance, choosing a $1,000 deductible instead of $500 could reduce your monthly payment, but you’ll need to cover more out of pocket if you file a claim.

Homeowners insurance: what does it cover?

Unlike auto insurance, there is more variability between home insurance policies and companies. While you can find an in-depth outline of what is covered by a homeowners policy here, the primary components of a policy are listed below.

✅ Dwelling coverage

In any homeowners policy, your dwelling coverage is the physical structure: walls, roof, and other structural components. Dwelling coverage comes standard and every home is insured at its replacement cost value. If your home were to burn down, your replacement cost coverage would reimburse you for how much it would cost to rebuild it to its original state (up your coverage limit).

You do not need to determine the replacement cost yourself but you should have an idea of your home's value to avoid being lowballed.

Take the following steps to estimate the cost of home repairs:

Research labor costs: A general formula for this is to multiply the average rate for builders (by square footage) by your square footage.
Consider upgrades you've made to your home: Newer floors, roofing, cabinets, fixtures, and appliances may cost more to replace or repair.
Include your home’s exterior finish: Calculate the value of your home’s exterior, including siding, windows, and window treatments.

It’s crucial to know the difference between the replacement cost of your dwelling and its market value. No insurance company will insure your home at its market value — that’s simply not the way insurance works. Market value includes the cost of your land, your neighborhood's cost of living, and other factors unrelated to rebuild costs.

If your mortgage lender and homeowners insurance disagree on the value of your replacement cost, you will need to moderate to reach an amicable agreement. Most insurance companies won’t insure your home for much more than its replacement cost value: their main responsibility is to return your home to its pre-damaged condition. In this situation, talk to representatives from your insurance company and mortgage lender — simultaneously, if possible.

Below is more information to consider when you’re further along in your dwelling coverage considerations:

✅ Personal property coverage

There's usually some flexibility on the amount of personal property coverage you can carry on your homeowners policy. A basic policy might give you 50% to 70% of your dwelling coverage for your personal property. If you have $200,000 in dwelling coverage, you would have $100,000 to $140,000 in personal property coverage. This can vary.

Something to keep in mind when you’re shopping for homeowners insurance with your personal belongings is whether you have any particularly valuable items for which you need additional coverage. Most homeowners policies restrict coverage on certain valuable items. Jewelry, fine art, guns, cash, and collectors are all subject to lowered coverage limits. Below are items often subject to insurance coverage:

Sub-limit	Property	Limitations
$200	Money, gold, coins
$1,500	Jewelry, watches, furs	Theft-only
$1,500	Watercraft, trailers	Theft-only
$2,500	Firearms
$2,500	Silverware
$2,500	Business property	On-premises
$500	Business property	Off-premises
Varies	Electronics

In addition to selecting how much coverage you need, you will also have to select your deductible. With a higher deductible, you’ll have a lower premium but the more you would have to pay after a claim. Average deductibles range from $250 to $1,000.

If you own anything of considerable value, you should add additional coverage. Learn more about homeowners insurance endorsements.

✅ Other structures

Additional structures include detached sheds, driveways, fences, swimming pools, or gazebos. Insurance for non-dwelling structures is typically 10% of the dwelling coverage amount. If, for example, your dwelling insurance totals $200,000, you would have $20,000 in coverage for other structures. Consider the physical value of any detached structures and set your insurance levels accordingly.

✅ Additional living expenses

This covers your additional housing fees if you’re forced out of your home due to a covered loss. This coverage is typically a percentage of your dwelling coverage.

✅ Liability insurance

Liability coverage is an important piece of any homeowners or renters insurance policy. For a homeowners policy, your liability is split into two parts: your personal liability and your medical payments to others.

Personal liability covers you if you’re held legally responsible for damage to bodily injury or property except when you’re driving (your auto insurance covers you at that point). It's a good idea to keep your personal liability level as high as you can afford — above the value of your home and your income.

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Additional home insurance coverages to consider

Below are additional coverage options you should think about when you’re shopping for home insurance. A more in-depth list can be found here.

➡️ Flood insurance

If you live in a flood zone or an area known for flooding, consider this coverage. Your landlord will more than likely require you to carry this coverage. Learn more about flood insurance or get a quote online from Neptune Flood Insurance.

➡️ Earthquake coverage

Depending on your insurance company and your location, you might be able to add this coverage to your existing policy or purchase an earthquake policy separately. Without it, a standard homeowners insurance policy would offer you no earthquake coverage.

➡️ Personal property endorsement

Purchase this coverage if you have personal items of particular value. Consider including in this coverage any fine art, watches, jewelry, guns, or collectible items.

➡️ Sewage and water backup insurance

If your sewage backs up, most homeowners policies will not cover any damage to your home or property. Depending on the extent of the damage, this could set you back thousands of dollars. For more information, see here.

➡️ Windstorm insurance coverage

Depending on your location, coverage for wind damage will be a policy add-on. If damaging winds are common in your area, you may need additional wind insurance coverage for your home.

The Zebra is here to help you find great savings and coverage.

Buying homeowners insurance FAQs:

What is the first step when buying homeowners insurance?

The first step is determining how much coverage you need by calculating your home’s replacement cost and estimating personal property and liability needs. It pays to be precise early on, as 17% of first-time buyers find their premiums spiking unexpectedly after they’ve already moved in. .^[1]

Can I buy homeowners insurance directly?

Yes. You can purchase homeowners insurance directly from an insurance company online or through an agent, or compare multiple quotes using an insurance marketplace.

Sources:

2026 State of Insurance™ [Home Trend Report]. The Zebra

2026 State of Insurance™ [Home Trend Report]. The Zebra

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.