You should get at least three to five home insurance quotes. Because every insurance company uses a different formula to weigh risks and calculate premiums, shopping around ensures you find the most competitive rate and the best coverage for your property.
Collect homeowners insurance quotes.
We recommend getting at least three quotes. This gives you a good sample of what's available for your home.
The 80% rule in homeowners insurance dictates that your dwelling coverage must equal at least 80% of your home’s total replacement cost. Meeting this threshold ensures your insurance company covers the full cost of repairs (minus your deductible) for a covered loss.
The 80/20 Rule generally requires insurance companies to spend at least 80% of the money they take in from premiums on health care costs and quality improvement activities. The other 20% can go to administrative, overhead, and marketing costs. The 80/20 rule is sometimes known as Medical Loss Ratio, or MLR.
Avoid making guesses or unsupported statements about what caused the damage to your property. Speculating can lead to inaccuracies in the adjuster's report, potentially affecting your claim.
How to Intimidate the Insurance Adjuster
Raise your deductible.
If you can afford to pay more toward a loss that occurs, your premiums will be lower. Also, avoid making claims for losses of less than $1,000.
Your home. Your bank or mortgage lender will likely require you to insure for at least 80 percent of the replacement value of your home in the event of a disaster such as fire, hurricane, hail, or lightning. Most policies also cover detached structures such as garages and tool sheds.
Avoid making statements like, “I'm fine,” “It's not that bad,” or “I don't really need to see a doctor.” Insurance adjusters rely on your early descriptions to judge how seriously you are hurt, and any language about your pain not being that bad can be used against you in the future.
The 80% rule dictates that homeowners must have replacement cost coverage worth at least 80% of their home's total replacement cost to receive full coverage from their insurance company.
Dave Ramsey considers homeowners insurance a non-negotiable tool to protect your biggest asset. He emphasizes carrying enough coverage to completely rebuild your home and replacing all your belongings in the event of a total loss.
Some insurers consider homes built more than 40 years ago as older properties. Homeowners insurance for older properties can be more expensive because: Structures and systems that have seen decades (or even centuries) of wear and tear may be more likely to cause problems.
The current average cost of homeowners insurance is $2,466 annually for a policy with $300,000 in dwelling coverage. However, the cost of your policy can depend on many different factors, including your location and more.
An HO-5 policy is generally considered better because it offers significantly broader, "open perils" coverage for your personal property, whereas an HO-3 only covers personal property for "named perils".
The average contents value for a 3-bedroom house typically ranges from $𝟒𝟎,𝟎𝟎𝟎 to $𝟖𝟎,𝟎𝟎𝟎. This covers the cost of replacing your furniture, electronics, clothing, and appliances in today's market, though it can easily exceed $𝟏𝟎𝟎,𝟎𝟎𝟎 depending on your lifestyle and high-value possessions.
Citing severe weather and natural disasters, the study's authors found that home insurance costs are expected to increase 4% on average by the end of the 2026, marking the fifth straight year of increases.
Common Factors That Impact Your Homeowners Insurance Premium
The following factors can lead to a better insurance rate:
The insurance company that denies the most claims depends heavily on the type of insurance you are referring to:
When you file a claim after an accident, insurance companies often use tactics to protect their bottom line rather than pay you fairly. These strategies—sometimes called the “3 D's” (Delay, Deny, Defend)—are designed to minimize payouts, frustrate victims, and pressure people into unfair settlements.
One hidden truth is that insurance companies often aim to minimize their payouts. Adjusters may downplay the extent of the damage, offer lowball settlements, or employ various tactics to delay the claim settlement process.
Raise your deductible
Many homeowners choose deductibles in the range of $500 to $2,000, with around $1,000 being a common choice. If you are financially comfortable, increasing your deductible from $500 to $1,000 may reduce your premium by roughly 10 to 25 percent, depending on your location, insurer, and home value.
The best home insurance companies in May 2026
The total value of your contents you want to insure. As a rough guide the average contents amount is between £45,000-£50,000*. Our contents calculator can help you work this out. Details of any high-value items worth over £1,000 you want to cover.