How to Shop for Insurance

Shopping for home insurance is simple if you know what matters—and a disaster if you don’t. Most homeowners compare price first, coverage second, and the fine print never. That’s how people end up with policies that look cheap until the claim hits. This guide shows you exactly how to compare quotes the right way, in the right order.

Before you pull quotes, refresh yourself on coverage basics so you know what you’re actually comparing.

1. Start With the Dwelling Coverage Limit

This is the heart of your policy. Ignore price until you confirm this number makes sense.

• Must match the home’s rebuild cost—not the market value
• Quotes with suspiciously low dwelling limits are bait pricing
• Always compare this number first across insurers

If you’re not clear on how insurers calculate this number, review how insurers evaluate risk.

2. Compare Roof Coverage Type (RCV vs ACV)

Insurers quietly downgrade roofs to ACV to make the premium look cheaper. ACV is a huge hit during a claim—expect pennies for an old roof.

• RCV = full replacement
• ACV = replacement minus depreciation
• ACV usually means you pay thousands out of pocket

If one quote is cheaper, check the roof coverage—it’s often the reason. See ACV vs RCV for the breakdown.

3. Check the Deductibles Carefully

A low premium usually hides a high deductible or percentage-based wind/hail deductible.

• Avoid deductibles you can’t comfortably pay
• Wind/hail deductibles above 2% can get expensive fast
• Compare apples to apples across insurers

Small deductible differences can skew the entire price comparison.

4. Look for Missing Endorsements

Cheap policies leave out essential coverage. Always check for:

• Water backup coverage
• Extended dwelling replacement
• Service line coverage
• Equipment breakdown

For example, water damage is one of the most common claims—but sewer backup is excluded unless added. See water backup basics before choosing a policy without it.

5. Compare Personal Property Coverage Type

Some insurers quote ACV for belongings by default to keep the premium low. That means old furniture, TVs, and appliances get depreciated heavily.

• RCV → pays full replacement
• ACV → pays used value

If one quote is way cheaper, check this line item.

6. Look at Liability Coverage

Liability claims can be financially devastating, but liability coverage is cheap. Don’t compare quotes using minimum limits.

• $300,000 should be the floor
• $500,000 is better for anyone with assets
• Umbrella policies stack on top if needed

If you’re not sure how liability works, skim liability coverage basics.

7. Ask About Claim Handling and Inspections

Two insurers can quote identical coverage but deliver totally different claim experiences.

• Does the insurer inspect after binding?
• What’s their average claim turnaround?
• Do they use third-party adjusters?

If you’ve never dealt with an adjuster, read adjuster basics so you know what you’re walking into.

8. Compare Renewal Behavior, Not Just Year One Price

Some insurers lure buyers with a cheap first-year price, then hike premiums 20–40% at renewal. Others bump gently. You need to know which kind you're dealing with.

• Ask the agent about average renewal increases
• Ask if any “introductory discounts” drop off next year
• Look for companies known for aggressive renewals

9. Pull 3 Quotes Minimum

Shopping only one or two insurers is how people get overcharged without knowing it. Three solid quotes reveal the market range.

• Avoid same-carrier subsidiaries (they price the same)
• Compare independent agents vs captive agents
• Make sure all quotes match in coverage, deductibles, and endorsements

10. Make Your Final Decision Based on Coverage First

Once the coverage is aligned across quotes, then look at price. The cheapest strong policy wins—not the cheapest overall.

• Eliminate any quote with ACV roof coverage
• Eliminate quotes missing essential endorsements
• Pick the policy that protects you—not the lender and not the insurer

Good insurance saves you five digits during a claim. Cheap insurance costs you the same amount for the wrong reasons.