Buying a home is a thrilling milestone, and getting homeowners insurance along with the property is prudent if nothing else. Protection against natural elements, unforeseen natural disasters, or simple theft won’t go amiss. But how can you reliably know if the policy is right for you? 

The common pitfall for all coverage-seekers is that homeowners insurance isn’t a one-size-fits-all affair. Various homes, locations, and personal preferences call for unique coverage considerations, not to mention the key points you should consider before approaching any insurer. 

With decades of experience, we at Old Harbor can advise you here. We believe in competitive rates, excellent customer service, and, most importantly, fair deals. Seeing that the definition of “fair” stretches to transparent communication, let’s get into our “How to shop for homeowners insurance” guide and see how we can help you.

How To Shop For Homeowners Insurance: Key Considerations

To precisely describe how to shop for homeowners insurance is indeed tricky. Each client has their preferences, and no situation is the same. But, regardless of where you currently live, this guide will focus exclusively on common things insurees miss when looking for a suitable policy. 

So, let’s start with the basics you want to consider first and then move on. 

The Basic Coverage Needs

You should begin your insurance-seeking journey with property and personal belongings value and regional factors. You should consider these before shopping around, as you want to ensure all bases are covered. The reasons are as follows:

  • Dwelling Insured To Value. The dwelling coverage safeguards the structure of your home. Here, It’s imperative to accurately estimate the replacement cost of your home to steer clear of being underinsured. This entails calculating the cost to rebuild your home from scratch, factoring in the current construction rates in your locality. Engage with insurance professionals or leverage online tools to garner a precise estimate, ensuring your coverage mirrors the full replacement cost, thus providing a solid financial cushion in the event of a total loss.
  • Assessing the Total Value of Personal Belongings and Assets. Your cherished belongings within your home necessitate a protective cover, too. Take stock of all your possessions – furniture, electronics, apparel, and other personal items. A detailed inventory, complete with photographs and receipts, can offer a clear picture of the total value of your assets. This exercise helps determine the amount of personal property coverage you need and simplifies the claims process should you face a loss.
  • Geographic and Location-Specific Risks Affecting Coverage Needs. The geographical locale of your home often dictates the type and extent of coverage required. Areas prone to natural disasters such as floods, earthquakes, or hurricanes may necessitate additional coverages or endorsements to your standard policy. Engage with local insurance agents or community resources to understand the common risks associated with your area. 

Key Coverage Considerations

After considering these three, we advise you to consider a few specific points tied to coverage options. These will become instrumental in ensuring your peace of mind. 

Liability Coverage

Ensuring a minimum liability coverage of at least $500,000 is crucial for safeguarding your financial assets if you are held responsible for injuries or damages to others. Most homeowners insurance policies offer a minimum of $100,000 worth of liability insurance; however, higher amounts are available and recommended. It’s advisable to consider purchasing at least $300,000 to $500,000 worth of liability coverage​​.


Opting for a deductible of at least $2,500 or higher can help lower your premium. Home insurance deductibles typically range from $250 to $5,000. By choosing a deductible of $2,500 to $5,000, you might save 10%-20% on your premium. This reduction in premium could translate to an average saving of $512 annually​​.

Water Back-Up Coverage

Including water backup coverage, especially for water backing up from drains, is essential to your homeowners insurance policy. This coverage protects your home and personal property from water damage resulting from sewage or sump pump backups. It’s an optional coverage that can be added to your policy for a relatively small annual fee, usually starting from $30​​.

Personal Injury Coverage Protection

Securing coverage against personal injury claims is vital to protect yourself from financial losses in case of lawsuits arising from injuries on your property. Personal liability coverage covers the medical expenses of the injured party and the legal costs associated with the claim.

Extended Replacement Costs

Extended replacement cost coverage is an add-on to your homeowners insurance policy that provides additional coverage for rebuilding your home if the cost to rebuild exceeds your policy limit, which can be especially beneficial in a total loss scenario. This coverage typically extends your dwelling coverage limit by 10% to 50%, providing a buffer against potential shortfalls incurred on construction labor materials. The cost for this coverage is relatively minimal, often ranging from $25 to $50 annually, depending on the percentage and location​​.

Exploring Discounts And Savings

Acquiring a homeowners insurance policy comes with opportunities for discounts that can lead to substantial savings. Common discounts include multi-policy discounts, where bundling your homeowners insurance with other policies from the same insurer can result in lower premiums. Claims-free discounts reward homeowners with a history of no claims with reduced premiums. Additionally, implementing home safety features such as smoke detectors and burglar alarms can qualify you for further discounts. 

Bundling insurance policies is a savvy way to achieve cost savings. Combining home and auto insurance, for instance, can result in an average saving of 30% on premiums. Besides the financial advantage, bundling simplifies the management of your insurance policies as you deal with a single insurer for multiple coverage needs. This consolidation also streamlines the claims process, making it less cumbersome in case of a mishap. 

Obtaining And Comparing Quotes

Diving into homeowners insurance requires closely examining quotes from various providers. This step is crucial as it helps snag a favorable deal and aligns the coverage to your needs.

Start by reaching out to multiple insurance providers to request quotes. Obtaining at least three comparable quotes is wise to understand the range of offers available. Online platforms are handy tools for this, facilitating a side-by-side comparison of quotes.

You’ll notice different coverage options and prices as you sift through the quotes. Understanding the coverages, limits, and exclusions each quote entails is crucial. Pay special attention to the dwelling coverage amount, personal property, and liability coverages, as these form the core of most quotes.

Comparing the costs against the coverages offered is an exercise that demands attention. A lower price might often mean lesser coverage or higher deductibles. It’s also noteworthy to understand how the dwelling coverage amount impacts the rate; for instance, a significant increase in dwelling coverage could lead to a proportional increase in cost.

Aside from the financials, evaluating the reputation of insurance providers in terms of customer service is vital. A smooth claims process and responsive customer service are invaluable in times of need. Customer reviews and ratings can glimpse the experience you might expect with each insurer.

With a thorough comparison, narrow down to the insurance provider that resonates with your coverage needs and budget. Before finalizing, ensure all your concerns are addressed, and you fully comprehend the terms of your policy. 

Reviewing And Finalizing Your Policy

Understanding the coverage provided, the perils included and excluded, and any additional coverage through endorsements can clarify your policy​​. This scrutiny ensures that the policy aligns with your needs and provides adequate protection for your home and belongings.

Financial stability indicates an insurance provider’s ability to meet obligations, making it a vital consideration before finalization​​. Financial ratings from independent agencies like A.M. Best, Fitch, and Moody’s can provide insights into the financial strength of insurance companies. Alongside financial stability, considering the customer service reputation of the insurance provider is essential. A provider with a good customer service reputation will likely have a smoother claims process and be more responsive to your needs. Assessing customer satisfaction through reviews and ratings can provide a glimpse into the level of service you might expect​​.

Making informed decisions involves thoroughly comparing and understanding coverage options. This process entails comparing quotes from different providers, understanding the coverages, exclusions, and endorsements each quote entails, and evaluating the reputation of insurance providers in terms of customer service and financial stability. Armed with this information, you can make a well-informed decision that ensures you get a policy that provides robust coverage without stretching your finances thin.


Your approach on how to shop for homeowners insurance should be multifaceted. Understanding the coverage needs, exploring available discounts, and thoroughly reviewing policy details before finalizing is crucial. Each step ensures you secure the necessary coverage and avail of possible savings.

But if all this seems a little daunting, consulting with reputable insurance providers like us at Old Harbor can significantly simplify this process. Our personalized service and tailored coverage solutions ensure a policy that aligns with your coverage needs and financial situation. With the right guidance, you can make well-informed decisions and secure a homeowners insurance policy that provides peace of mind.