Home Insurance Calculator
Calculating your home insurance cost before buying a policy can help you get the cheapest rate for the coverage you need.
You can use an online home insurance calculator to do this, but doing it yourself might help you save even more in the end. That’s because it can help you see how your different coverage types and limits affect your overall homeowners insurance quote.
How to calculate home insurance
To calculate your estimated home insurance cost, start by figuring out how much of each coverage type you need. This will show you how different parts of your home insurance policy impact your quote.
Dwelling coverage
Dwelling coverage protects the physical structure of your home as well as attached structures like a garage or deck. If it would cost $350,000 to rebuild your home, your dwelling coverage limit should be at least $350,000.
Also, the higher your dwelling limit, the higher your home insurance rate. For example, raising your dwelling coverage from $350,000 to $400,000 hikes your rate from $2,498 to $2,801, a 12% increase.
Home insurance rates by dwelling limits
| Dwelling limit | Annual rate |
|---|---|
| $350,000 | $2,498 |
| $400,000 | $2,801 |
| $450,000 | $3,111 |
To find how much dwelling coverage you need, contact a local real estate agent or construction company. They can help you figure out the rebuild cost for your home.
If you already have a home insurance policy, look at its declarations page. It should have this information, too.
Consider giving yourself a buffer in your dwelling coverage limit of about $50,000. So if the rebuild cost is $350,000, bump up your policy limit to $400,000. This helps ensure your rebuild costs will be totally covered, especially if things like debris removal costs and required building code upgrades come into play. It also helps to keep you ahead of inflation.
Personal property coverage
Personal property coverage helps you replace your belongings, such as clothing, furniture or electronics, if they’re damaged or destroyed.
To estimate how much personal property coverage you need, create a home inventory list. Include on it each item’s cost and serial number, if possible. This will help make sure you don’t over- or under-insure your belongings.
Another decision you need to make about this kind of coverage is how you want to be paid if your belongings are damaged or destroyed. You can choose to be paid actual cash value or replacement cost for your things.
- Actual cash value: Considers the age of the damaged item, along with things like wear and tear, when calculating your payout amount.
- Replacement cost: Pays you what it would cost to replace the damaged item with a similar new one, even if it’s more expensive than the original.
Replacement cost coverage typically costs more, but it also lets you get an equal replacement of the item, no matter what it costs now.
Also, high-value items like jewelry, art and collectibles often have a separate limit, starting at about $2,000. You can usually pay a bit more to cover expensive items for their full value.
Liability coverage
Liability coverage helps cover medical and legal expenses that can result from someone getting injured on your property.
By default, home insurance policies include a minimum of $100,000 in liability coverage. While this may seem like a lot, a long hospital stay or court case can tear through that limit quickly. You’ll need to pay any costs that go over your liability limit out of your own pocket. To avoid this, consider raising it to at least $300,000. You shouldn’t see much of a difference in your home insurance rate.
Your deductible
Your deductible is the amount you agree to pay before your home insurance company pays the rest of your claim. If you choose a higher deductible, your home insurance premium will be lower.
Most home insurance companies offer deductibles of between $500 and $5,000. If you have a healthy savings account or a new home, consider choosing a deductible of $1,000 or more. This will help to keep your home insurance quote low.
Other factors that affect your home insurance rate
Your home insurance rate is based on more than the coverage types and limits you choose for your policy. It’s also based on your:
- ZIP code
- Home’s age
- Credit history (in some states)
- Insurance claim history
- Marital status
Home insurance companies don’t all look at these factors in the same way. For example, one company may see your home’s location as more of a risk than another company and charge you more because of it. The same is true of these other factors.
This is why comparing home insurance quotes from several companies can be crucial to getting the most affordable rate.
How to lower your home insurance costs
Some of the best ways to reduce your homeowners insurance rate are to shop around, change your deductible and ask about discounts.
Compare quotes
When you compare home insurance quotes side by side, it gives you a lot of control over what you pay for a policy. Use the same coverage limits and deductible amount for all the quotes you calculate in order to get an accurate comparison.
Raise your deductible
If your house is in good condition and you can afford it, consider increasing your deductible. This will make your premium go down. Just know that you’ll have to pay more out of your own pocket if you ever need to file a claim.
Improve your credit score
Some home insurance companies think people with bad credit scores are more likely to file claims, so they charge them more because of it. Improving your credit score can help lower your rates. LendingTree can help you check your credit score for free.
Find discounts
Insurance companies offer discounts to stay competitive. When comparing companies and quotes, look at all of the discounts they offer and see which ones you may be able to get. If you aren’t sure, talk with an agent.
Review dwelling and personal property limits
The costs of rebuilding your home and replacing your belongings can change over time. If either of these costs goes down, lower your limits and save some money.
Invest in a home security system
Having smoke detectors, sprinkler systems and monitored fire and burglar alarm systems in your home can do more than give you peace of mind. It can also reduce your risk of filing a claim, which should make your home insurance cheaper.
Bundle home and auto insurance
Bundling your home and car insurance with one company can save you a lot of money. For example, you can save up to $1,273 a year on home and car insurance by bundling your policies with State Farm.
How to get a home insurance quote
To get a home insurance quote, go to a company’s website or an insurance comparison site. If you go to individual company sites, look for a button that says “Compare quotes” or something similar.
You will need to share some information before your quote is calculated, including your address, the age of your home and the coverage limits and deductible you want.
You also may need to gather certain pieces of information so you can qualify for discounts.