Digital Natives vs. Established Experts: The Shift in How People Are Approaching Home Insurance Shopping

First-Time Homebuyers Are Online Shoppers

First-time homeowners are overwhelmingly digital-first shoppers. This makes sense when we look at who first-time homebuyers really are: Millennials. While in the past (say, the 1990s) the average age for first-time homebuyers was 28, today the average age has reached a record high of 40.^[1][2] This generation was one of the first to embrace online shopping as a whole, with 58% of Millennial shopping now happening online. Millennials are 16% more likely to shop online than the average American consumer.^[3] 

This digital-first shopping trend continues into home insurance purchasing. According to our data, 33% of first-time buyers go directly to an insurance company’s website to shop, compared to 26% of general homeowners. 

This trend extends to comparison and recommendation tools:

• Comparison Engines: 20% of first-time buyers use sites like NerdWallet or The Zebra, while only 13% of general homeowners do the same. Notably, 45% of first-time homeowners said they compared at least three rates before making a decision.
• Online Community Advice: New buyers are also more likely to trust the wisdom of the crowd, with 14% seeking recommendations from Reddit or Consumer Reports, nearly double the 9% of general homeowners who do so.

The most dramatic disparity exists in the use of independent insurance agents. 19% of general homeowners utilize an independent broker to navigate the complexities of their policy. In contrast, only 7% of first-time homeowners do the same.

This could be because, as homeowners gain experience and perhaps encounter more complex insurance needs or claims, they begin to value the nuanced advice of a professional over the convenience of a "Buy Now" button. That said, it could also just be a generational difference. The average age of repeat homeowners is now 62, which puts them in Gen X, which has its own shopping preferences.^[2]

The "Set It and Forget It" Trap

One of the most telling statistics is the loyalty of general homeowners. Of consumers surveyed, 9% of general homeowners admit they don't shop around at all, whereas nearly every single first-time buyer is actively looking for the best deal.

For the first-timer, every dollar counts toward a tight closing budget. For the established homeowner, the convenience of staying with an existing provider often outweighs the potential savings found by re-entering the market.

Shopping around for home insurance is important because prices and coverage can vary dramatically between insurers for the exact same home and risk profile. By comparing multiple quotes, homeowners can often save hundreds of dollars a year or find better protection. Despite this, most people don’t shop around regularly because it feels time-consuming, confusing or easy to put off once a policy is already in place.

The Knowledge Gap: What Homeowners Struggle to Understand

While their shopping methods differ, both groups face a steep learning curve when it comes to the fine print of their policies. However, the data reveal that first-time homeowners are significantly more confused by the fundamental mechanics of insurance than their more experienced counterparts.

The Great Deductible Divide

The most striking disparity lies in the understanding of deductibles. A massive 36% of first-time homeowners report they do not fully understand how deductibles work, compared to just 18% of general homeowners. 

First-time buyers also struggle with the core "how and why" of their coverage:

• Coverage Limits: 37% of first-time buyers are unclear on their limits, whereas only 27% of general homeowners feel the same.
• The Claims Process: New owners are nearly twice as likely (33% vs 19%) to be confused by how to actually file a claim and get paid.
• Premium Calculation: Interestingly, both groups are roughly aligned here, with about one-third of all homeowners (33% for first-timers, 30% for general) admitting they don't quite understand how their monthly or annual costs are calculated.

Common Ground: Exclusions and Add-ons

Experience does not necessarily solve everything. When it comes to exclusions (what is not covered) and additional coverages, the gap disappears:

• Exclusions: This remains the top area of confusion for General Homeowners (33%), even slightly outpacing the confusion felt by first-timers (30%).
• Additional Coverages: Both groups sit tied at 31%.

The Diligence Gap: First-Time Homeowners More Likely to Read Their Policy Thoroughly

Interestingly, some of the disconnect with understanding their policies may have to do with who is actually reading it. As in, the first-time homeowners might have more questions because they are really delving into their policies.

We asked consumers how much of their insurance policies they read and how thoroughly. There is a clear diligence gap between those buying their first home and those who have been in the game for a while.

First-Timers Are the Ultimate Fact-Checkers

The most striking takeaway is the level of thoroughness among new buyers. Over 55% of first-time homeowners claim to have read their policy thoroughly, including exclusions and fine print. In comparison, only about 22% of general homeowners can say the same.

This suggests that for a first-time buyer, the home insurance policy isn't just a legal requirement; it’s a critical document they feel the need to master.

Seasoned Homeowners More Likely to Skim

As homeowners become more established, their tendency to deep dive into the paperwork seems to dwindle. General homeowners are much more likely to take a high-level approach:

• The Skimmers: 25% of general homeowners admit they only skimmed the document, compared to less than 10% of first-timers.

• The "Top-Line" Readers: Roughly 11% of general homeowners only reviewed key sections like coverage and price, more than double the rate of first-time buyers (approx. 5%).

• The Non-Readers: About 5% of general homeowners did not read the policy at all, a risk that almost no first-time homeowners (only 1%) were willing to take.

Methodology