Estimate your annual home insurance premium and get personalized coverage recommendations based on your home type, location, construction, and risk factors.
Your Home
Coverage Amounts
Use the mortgage calculator to compare your mortgage balance with your home value.
RCV pays for new equivalent items — typically worth the extra 10–15% premium
Calculate your net worth to determine appropriate liability coverage.
Additional Coverage Options
1.5% annual premium for scheduled items (requires appraisal)
Your Estimate
Estimated Annual Premium
Approx. $46/month
Typical range: $414 – $745/year
Total Coverage: $881,000
Coverage Summary
How Coverage Choices Affect Your Premium
Factors Affecting Your Estimate
Available Discounts to Ask About
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Compare the best home insurance providers ranked by coverage, price, and claims service.
See Best Home Insurance ProvidersSelect your home type, year built, square footage, construction type, roof material and age, and location. These inputs determine your base premium and the estimated rebuild cost for your dwelling coverage.
Click "Use this amount" to auto-fill your dwelling coverage with the estimated rebuild cost based on your square footage and state. Dwelling coverage should always be based on rebuild cost — not market value or purchase price.
Use the "Estimate my property" toggle to enter values for major categories — furniture, electronics, clothing, appliances. The total automatically fills your personal property coverage. Choose Replacement Cost Value for the best protection.
Select a liability limit that reflects your net worth and risk exposure. $300,000 is the minimum recommendation for most homeowners. Use our net worth calculator to determine how much you have to protect.
The results panel shows how each coverage decision affects your premium. Use the sensitivity analysis to compare what happens if you choose a higher deductible, ACV instead of RCV, or lower liability limits.
Not sure if your existing home insurance is adequate? Use our insurance coverage checker to audit all your current policies.
Home insurance is one of the most misunderstood types of coverage. For a full introduction, read our home insurance explained guide.
A standard homeowners policy (HO-3) provides coverage across six categories: dwelling (your home structure), other structures (detached buildings), personal property (your belongings), loss of use (temporary living expenses), personal liability (legal and medical costs if someone is injured on your property), and medical payments to others (minor guest injuries). Together, these six coverage types protect against most of the major financial risks of homeownership.
Home insurance policies use two frameworks for what is covered: open perils and named perils. Open perils coverage — used for dwelling and other structures in most HO-3 policies — covers all causes of loss except those specifically excluded. Named perils coverage — often used for personal property — covers only the specific causes of loss listed in the policy. This distinction matters enormously when you have a claim: open perils places the burden on the insurer to prove something is excluded, while named perils requires you to prove your loss was caused by a listed peril.
Standard home insurance policies almost always cover fire, lightning, windstorm and hail, theft, vandalism, falling objects, weight of ice and snow, accidental water discharge from burst pipes or malfunctioning appliances, and the explosion or tearing apart of steam or hot water systems. These perils account for the vast majority of homeowner insurance claims. Fire and wind are consistently the most common and costly covered losses.
Standard policies almost never cover floods, earthquakes, normal wear and tear, mold from long-term moisture problems, foundation settling, or pest damage. Flood damage is excluded universally from standard policies regardless of cause — a sewer backup that floods your basement is also often excluded unless you have a specific water backup endorsement. Understanding what is not covered is as important as knowing what is, because these gaps represent the sources of most coverage disputes.
The reconstruction cost versus market value distinction is one of the most important concepts in home insurance. Your home's market value includes the land (which cannot burn down), local real estate market conditions, and comparable sales — none of which are relevant to the cost of rebuilding the structure after a total loss. Construction costs are driven by materials, labor, permits, and debris removal. For most homeowners, the rebuild cost and market value are different, and insuring for market value typically means significant underinsurance of the actual replacement cost.
Personal property coverage pays for the replacement or reimbursement of your belongings when damaged, destroyed, or stolen. The most consequential choice you make here is between Actual Cash Value (ACV) and Replacement Cost Value (RCV). ACV pays the current depreciated market value of your items — a five-year-old television might be worth $150 under ACV. RCV pays for a comparable new replacement — that same television might cost $600 new. The premium difference between ACV and RCV personal property coverage is typically 10 to 15%, making RCV the better value for most homeowners with significant personal property.
Flood Damage is Never Covered by Standard Home Insurance
Flood damage is the single most common and costly natural disaster in the United States — yet standard home insurance does not cover it under any circumstances. If your home is in a flood zone or your area experiences heavy rainfall, a separate flood insurance policy from the NFIP or a private insurer is essential. Use our Budget Planner to account for flood insurance in your overall housing budget.
Every standard homeowners policy (HO-3) provides six distinct coverage types. Understanding each one — and choosing the right limits for each — is the difference between being fully protected and being dangerously underinsured.
Pays to repair or rebuild the physical structure of your home — walls, roof, floors, built-in appliances, and attached structures like garages — after a covered loss. This is the foundation of your policy and should always be set to your home's estimated rebuild cost, not its market value or purchase price.
Covers detached structures on your property: detached garages, fences, sheds, pergolas, swimming pool enclosures, and guest houses. Standard policies automatically set this at 10% of your dwelling coverage amount. If you have a high-value detached structure, you may need a higher limit.
Pays to replace or reimburse your belongings when stolen, destroyed, or damaged by a covered peril. Applies whether belongings are at home, in your car, or traveling with you. The critical choice is between Actual Cash Value (ACV), which pays depreciated value, and Replacement Cost Value (RCV), which pays for a comparable new item.
Pays your additional living expenses — hotel, meals, storage, laundry — when your home becomes uninhabitable due to a covered loss. This coverage kicks in while your home is being repaired. Standard policies set this at 20–30% of dwelling coverage, though in high-cost cities this can run out quickly.
Pays for legal defense costs and settlements if someone is injured on your property or if you accidentally damage someone else's property. Also covers incidents away from home in many cases. Most financial advisors recommend at least $300,000 in liability coverage — the premium increase from $100,000 to $300,000 is typically only $20–$40 per year.
Pays minor medical expenses for guests injured on your property regardless of fault — no lawsuit needed. Typically set at $1,000–$5,000, this coverage is designed for small injuries like a guest slipping on your stairs. It keeps small accidents from turning into liability claims and demonstrates good faith to injured guests.
Most coverage disputes arise not from what a policy covers, but from what it excludes. These exclusions are the most common sources of financial shock after a loss.
Flood Damage
The most costly exclusion. No standard home insurance policy covers flood damage from any external water source — rivers, storm surge, heavy rain, or municipal sewer overflow. You must purchase a separate flood insurance policy through the NFIP or a private insurer. Approximately 1 in 4 flood claims occur outside high-risk flood zones.
Earthquake Damage
Ground movement, including earthquakes, aftershocks, and sinkholes caused by earth movement, is universally excluded. Earthquake insurance is available as a standalone policy or endorsement in most states. California residents should check CEA (California Earthquake Authority) options. Coverage is essential in the Pacific Northwest, Mountain West, New Madrid Seismic Zone, and other at-risk regions.
Normal Wear and Tear
Home insurance is not a home warranty. Gradual deterioration — peeling paint, worn carpeting, an aging HVAC system, deteriorating caulking — is never covered. The policy covers sudden, accidental losses, not predictable maintenance needs. This distinction is frequently misunderstood and leads to claim denials.
Mold, Rot, and Pest Damage
Damage from mold, dry rot, fungi, or pests (termites, rodents, insects) is excluded because these problems develop over time and are considered preventable through maintenance. The exception: if mold results directly from a covered sudden water loss (such as a burst pipe), your insurer may cover mold remediation as part of that claim.
Foundation Settling and Earth Movement
Gradual foundation settling, cracking due to soil movement, and subsidence damage are excluded. These are considered gradual conditions rather than sudden covered losses. In areas with expansive clay soils (common in Texas and Oklahoma), this exclusion is particularly important — foundation problems are extremely common and extremely expensive.
Sewer Backup (Without Endorsement)
A sewage or drain backup that floods your basement is not covered by standard policies — even though this is one of the most common water damage claims. A water backup and sewer endorsement typically costs $40–$80 per year and provides $5,000–$25,000 in coverage. This is among the most cost-effective endorsements available.
Business Property and Liability
If you run a business from home, standard coverage for business equipment is limited (typically $2,500) and business liability is excluded entirely. A home-based business endorsement or separate business owners policy (BOP) is required if you have clients visiting, significant business equipment, or business inventory stored at home.
High-Value Items Above Sublimits
Standard personal property coverage applies sublimits to specific categories: jewelry is typically capped at $1,500, silverware at $2,500, firearms at $2,500, and fine art at $2,500. If you own items exceeding these limits, a scheduled personal property endorsement or floater is required to fully protect them.
How to Address Coverage Gaps
For flood risk, purchase NFIP or private flood insurance separately. For earthquake risk, add an earthquake endorsement or standalone policy. For sewer backup, add a water backup rider ($40–$80/year). For high-value items, schedule them individually. Use our Budget Planner to budget for supplemental coverage premiums.
Home insurance pricing is determined by dozens of factors that actuaries use to predict your risk of filing a claim. These six factors have the largest impact on your annual premium.
State-level regulation, weather risk, and local construction costs create wide premium variation. Florida homeowners pay 2–3× the national average due to hurricane exposure. Michigan rates are low due to minimal catastrophe risk. Within a state, ZIP code matters: homes in coastal flood zones, wildfire interface areas, or high-crime ZIP codes carry surcharges. Your proximity to a fire station and fire hydrant directly affects your dwelling rate.
Tip: Moving 2–3 miles can change your rate by 10–15% if it crosses a major risk zone boundary.
Your annual premium scales almost linearly with your dwelling coverage amount. Every $100,000 in dwelling coverage adds roughly $50–$90 to your annual premium depending on construction type and state. This relationship is predictable and is why accurately estimating rebuild cost — rather than over-insuring or under-insuring — matters for both protection and cost.
Tip: Ask your insurer for a replacement cost estimator to get an independent rebuild cost figure.
Your deductible is the amount you pay out of pocket before insurance pays. Raising your deductible from $1,000 to $2,500 typically reduces your annual premium by 8–12%. Raising it to $5,000 reduces it by 15–20%. The math only works in your favor if you rarely file claims — frequent small claims can trigger non-renewal or rate increases that cost more than the savings.
Tip: Set your deductible to an amount you can genuinely afford to pay without financial hardship.
Homes built before 1980 often have outdated electrical systems (knob-and-tube or aluminum wiring), galvanized plumbing, and older roof systems — all of which elevate risk. Brick and masonry homes typically receive 15–20% lower rates than wood frame homes due to fire resistance. Concrete block is the most fire-resistant and insurable construction type in most markets.
Tip: Major updates to electrical, plumbing, and HVAC can lower your rate and improve insurability.
Roof condition is one of the most scrutinized factors in home insurance. A roof over 15–20 years old may be insured on an ACV basis (depreciated value) rather than replacement cost — meaning you receive far less in a total roof loss claim. Metal roofs receive 5–10% discounts due to fire resistance and longevity. Wood shake roofs are surcharged 10–20% due to fire risk.
Tip: Replacing a roof over 20 years old before it causes a coverage issue or claim is often financially smart.
Insurers check the CLUE (Comprehensive Loss Underwriting Exchange) report for the property's claim history going back 5–7 years. Multiple prior claims can result in surcharges of 15–30% or non-renewal. In most states, your personal credit-based insurance score is also used — improving your credit score from "fair" to "good" can reduce your home insurance premium by 10–25% at many carriers.
Tip: Avoid filing small claims under $2,000–$3,000 — pay out of pocket to protect your claims history.
If you rent your home, you need renters insurance — not homeowners insurance. Renters insurance is one of the most cost-effective and underutilized financial products available. Here is how the two policies compare.
Why Renters Underestimate Their Need
The average renter owns $20,000–$40,000 in personal property. A single apartment fire or theft could wipe out all of it. Renters insurance also provides $100,000+ in personal liability coverage — which protects you if your dog bites a neighbor or a kitchen fire damages the unit. The average annual premium is just $175 — roughly $15/month.
One Critical Renter Misconception
Your landlord's insurance does NOT cover your belongings. If the building burns down, your landlord's policy pays to rebuild the structure — it does not pay a dollar toward replacing your furniture, electronics, clothing, or personal property. Renters insurance is the only policy that covers your belongings as a renter.
Currently Renting?
This calculator estimates homeowners insurance. If you rent, use our Budget Planner to budget for renters insurance as part of your housing costs.
Dwelling coverage should match your home's estimated rebuild cost — not its market value or purchase price. The rebuild cost reflects current local construction labor and material costs, permit fees, and debris removal. In high-cost metro areas, rebuild costs often exceed purchase prices. In declining real estate markets, rebuild costs can exceed market value significantly.
Use our rebuild cost estimator (in the calculator above) as a starting point, then ask your insurer to run their own replacement cost estimator at application. If your home has custom features — high-end finishes, custom cabinetry, stone countertops — provide documentation so the estimator reflects reality. The cost of being underinsured can be catastrophic: in a coinsurance clause state, being insured for only 80% of rebuild cost means you absorb 20% of every claim — not just after exhausting coverage.
Actual Cash Value (ACV) pays the depreciated value of your belongings at the time of the claim. Replacement Cost Value (RCV) pays for a comparable new item today. The difference in a major loss can be enormous: ACV on a $4,000 sofa purchased 5 years ago might pay $1,200. RCV would pay the $4,500 cost to replace it with a comparable new sofa.
The premium difference between ACV and RCV personal property coverage is typically 10–15%. For most homeowners with significant personal property (furniture, electronics, clothing, appliances), RCV is worth the additional premium. Conduct a home inventory — photograph every room and record item values — to ensure your personal property limit is adequate.
Personal liability coverage protects your assets if you are sued. The standard $100,000 limit is inadequate for most homeowners with any meaningful net worth — a single serious injury lawsuit can easily exceed $500,000. The premium difference between $100,000 and $300,000 liability coverage is typically only $20–$40 per year. The difference between $300,000 and $500,000 is similarly small.
If your net worth exceeds $500,000 or you have features that elevate liability risk (swimming pool, trampoline, aggressive breed dogs, home-based business), consider a personal umbrella policy. A $1 million umbrella policy costs $150–$300 per year and provides excess liability coverage above your home and auto policy limits. Use our net worth calculator to determine how much liability protection you need.
A higher deductible lowers your annual premium but increases your out-of-pocket cost when you file a claim. The break-even analysis is straightforward: if raising your deductible from $1,000 to $2,500 saves $100 per year, you break even after 15 years of claim-free coverage — but only if the single claim you file does not cost you the extra $1,500 deductible in the meantime.
As a practical rule, set your deductible to an amount you can pay from your emergency fund without financial strain. A $2,500 or $5,000 deductible makes sense only if you maintain adequate savings. Use our Emergency Fund Calculator to ensure your emergency savings cover your home insurance deductible.
Certain property types and locations require coverage strategies beyond a standard HO-3 policy. If any of these situations applies to you, your standard policy may not provide adequate protection.
Standard home insurance in Florida, Louisiana, Texas, and Atlantic coastal states often excludes wind damage in high-risk zones, requiring a separate windstorm policy or endorsement. In Florida, Citizens Property Insurance Corporation is the insurer of last resort for homes private insurers won't cover. Hurricane deductibles are separate from standard deductibles — typically 2–5% of your dwelling coverage amount — meaning a $400,000 home could have a $8,000–$20,000 hurricane deductible.
Action: Get separate windstorm coverage and flood insurance. Calculate your hurricane deductible in advance.
Homeowners in California, Oregon, Washington, Colorado, and other western states increasingly face non-renewal from private insurers due to wildfire exposure. The California FAIR Plan is the state's insurer of last resort but covers only the structure — not personal property or liability — so you also need a "Difference in Conditions" (DIC) policy. Wildfire-resistant construction features (Class A fire-rated roof, ember-resistant vents, fire-resistant siding) can improve insurability and lower premiums where coverage is available.
Action: In wildfire zones, begin renewal process 4–6 months early. Consider FAIR Plan + DIC combo.
Homes with knob-and-tube or aluminum wiring, galvanized or lead plumbing, and original wood shake roofs face higher premiums, coverage limitations, and in some cases, outright declination by standard market carriers. Some insurers require proof of updated electrical, plumbing, and roof systems before offering full replacement cost coverage. Others insure older homes on an ACV basis only — which means receiving depreciated value in a total loss.
Action: Update wiring, plumbing, and roof before shopping. Get inspections to document improvements.
Using your home as a short-term rental, even occasionally, can void your standard homeowners insurance. Standard policies are written for owner-occupied residences — any commercial use voids coverage during rental periods, leaving you fully exposed during a guest's stay. A home-sharing endorsement, landlord policy (DP-3), or platform-provided host protection program covers the rental period. Airbnb and VRBO offer AirCover and host protection respectively, but both have significant limitations and exclusions.
Action: Add a home-sharing endorsement or purchase a landlord policy before your first rental.
Not sure whether your current coverage is adequate? Use our Budget Planner to account for supplemental insurance costs — windstorm, flood, earthquake, or umbrella — in your overall housing budget.
Home insurance is one piece of a complete financial protection strategy. Use these tools to build a comprehensive financial safety net.
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Disclaimer
This home insurance calculator provides general educational estimates only. Premium estimates are based on industry average data, state cost indices, and common underwriting factors, and are not quotes from any insurance company. Actual premiums are determined by licensed insurance carriers based on full underwriting information specific to your property, claims history, credit profile, and other factors not captured here.
Rebuild cost estimates are approximations based on regional construction cost data and do not account for custom features, unique architectural elements, or local market conditions. Always obtain a professional replacement cost appraisal from a licensed appraiser or your insurer's estimator to set your dwelling coverage limit.
AssetClip is not a licensed insurance agent, broker, or carrier. This tool does not constitute insurance advice. To obtain actual quotes and purchase coverage, consult a licensed insurance agent or visit a state-licensed insurer or marketplace. Coverage requirements, exclusions, and regulations vary by state.