Your home is likely the biggest purchase you'll ever make and your mortgage lender will want proof it's insured before closing. ChaCha compares homeowners insurance quotes from the companies we work with and walks you through what each policy covers, what it excludes and how much coverage you actually need.
01
The home itself
Helps repair or rebuild the structure of your home after a covered loss like fire or wind. This is the part your lender requires.
02
What you keep inside
Covers your furniture, clothing, electronics and other belongings, at home or while traveling.
03
If someone is hurt
Helps if a guest is injured on your property or you accidentally damage someone else's property.
Homeowners insurance is a policy that protects your house, your belongings and you from certain financial losses. It combines property coverage and personal liability coverage in one package. You pay a premium and the insurance company agrees to pay for covered losses, minus your deductible, up to your policy limits.
Most homeowners in the U.S. carry an HO-3 policy. It covers the structure of your home against any cause of loss that isn't specifically excluded and covers your belongings against a list of named risks like fire, theft and windstorm. An HO-5 policy offers broader coverage for belongings and is often available for newer or higher-value homes.
No state law requires homeowners insurance. But if you have a mortgage, your lender will almost always require it and may add the premium to your monthly payment through an escrow account. Even if your home is paid off, going without insurance means you'd pay to rebuild and to defend a lawsuit on your own.
A standard policy is divided into several coverages, often labeled A through F.
| Coverage | What it does |
|---|---|
| A. Dwelling | Repairs or rebuilds your house and attached structures, like an attached garage |
| B. Other structures | Covers detached structures like a fence, shed or detached garage |
| C. Personal property | Covers your belongings, at home and often when you travel |
| D. Loss of use | Pays extra living costs, like a hotel, if your home is unlivable after a covered loss |
| E. Personal liability | Helps if you're responsible for injury or property damage to others |
| F. Medical payments | Pays small medical bills for guests hurt on your property, regardless of fault |
Common covered causes of loss include fire and smoke, lightning, windstorm and hail, theft and vandalism, the weight of ice and snow, falling objects and sudden water damage from a burst pipe. Exact terms depend on your policy and state.
This is where many people get surprised. Standard policies typically exclude:
We'll point out the exclusions that matter for your home and location before you choose a policy.
Your dwelling limit should be based on what it would cost to rebuild your home today, not its market value or what you paid. Rebuilding costs depend on square footage, materials, finishes and local labor prices. Land isn't included, because it doesn't burn down.
For personal property, a quick room-by-room estimate helps. Many people are surprised how fast clothes, furniture, kitchen items and electronics add up. For liability, many homeowners choose at least $300,000 and those with more savings or assets often add an umbrella policy.
Replacement cost pays what it costs to repair or replace damaged property with similar items at today's prices. Actual cash value subtracts depreciation, so you get less for older items. Replacement cost coverage usually costs more, but it's much closer to what you'll actually spend after a loss. Some policies also offer extended replacement cost, which adds a cushion if rebuilding costs spike after a big storm.
When we compare quotes for you, we line up the same dwelling limit and deductible, then check:
Whether you're closing on a new home or your renewal just went up, we compare home insurance quotes from the companies we work with and make sure your lender's requirements are met. We'll also tell you whether flood or umbrella coverage belongs in your plan.
ChaCha Insurance is an independent insurance agency. Quotes are free and asking for one doesn't start or change any policy.
We take the answers to the insurance companies we work with. You do not pay us a fee for the comparison.
Address, year built, square footage, roof age and construction type.
Your mortgage company's name and closing date, so they're listed correctly.
Your current declarations page, so we can compare like for like.
Have these handy?
It varies widely by state, rebuild cost and risk. Homes in areas with frequent hurricanes, hail or wildfires often cost more to insure. A quote is the best way to see your price. Your deductible, the age of your roof and home systems, your claims history and in many states your credit-based insurance score also play a part, which is why prices differ so much between companies.
It can, if the damage comes from a covered event like hail or wind. It won't pay to replace a roof that wore out from age. Some policies pay older roofs at actual cash value. Ask how a policy pays for roof damage before you buy, since two quotes can handle the same roof very differently and a separate wind or hail deductible can change what you pay.
Sudden water damage, like a burst pipe, is usually covered. Floods, slow leaks and sewer backup usually aren't unless you add coverage. Water that comes in from outside needs a separate flood insurance policy and sewer or drain backup can often be added with a water backup endorsement. Damage from a slow leak is treated as a maintenance issue, so it's worth fixing drips early.
Start shopping as soon as your offer is accepted. Your lender will need proof of coverage before closing. Starting early leaves time to compare quotes, answer questions about the home's roof and systems and ask whether flood coverage makes sense. Have the address, year built, square footage and your closing date ready when you ask for quotes.
Yes. Set up the new policy first, then cancel the old one. If you pay through escrow, let your lender know. Your old insurer will usually refund any unused premium, sometimes minus a fee. Make sure the new policy starts on the same day the old one ends, so you're never without coverage and send your lender the new declarations page.
Liability for dog bites is often covered, but some insurers limit or exclude certain breeds. Tell us about your pets so we can compare correctly. If your dog has bitten someone before, some companies may exclude that dog or decline the policy. An umbrella policy can add liability above your home limit and vet bills for your own dog need separate pet insurance.
Your landlord insures the building. This covers everything you moved in.
Fills the gap between your association's master policy and your unit.
Standard home policies exclude flood. This is the policy that does not.
Have a car too? We can quote home and auto together and separately, so you can compare.
Free, no obligation and no pressure to switch. Quotes move faster over the phone.
Updated
ChaCha, Inc. is an independent insurance agency. Coverage descriptions on this site are general summaries for information only. They are not an offer of insurance and they do not amend or replace the terms of any policy. Actual coverage is subject to policy language, underwriting approval and availability in your state.
