You have two home insurance quotes in front of you. One costs less, and the coverage amounts look pretty similar.
Should you take the cheaper one?
Maybe. I’d just want to know what changed before you decide.
Sometimes a lower premium is a better deal. Sometimes you’re agreeing to pay more after a claim. And sometimes the less expensive policy includes coverage you don’t have now.
I’d also want to know who you’ll turn to when you have a question or something goes wrong.
Let’s walk through what I would compare.
Start with the same information
Before comparing prices, make sure both quotes describe the same home.
Check the address, square footage, roof age, construction details and recent updates. Tell the agent or insurance company about a finished basement, detached garage or anything else that might affect the quote.
If one quote uses an older roof age or leaves out part of the home, get that corrected first.
Also compare the premium for the same period. Put both quotes on an annual basis, and ask whether payment fees or discounts affect the total.
Look at what it would take to rebuild
The dwelling limit is the amount listed for the house itself. It should reflect the cost of rebuilding, which can be different from its sale price or your mortgage balance.
If one quote has a lower dwelling limit, ask why. Different estimates can produce different numbers, but reducing the limit just to reach a lower premium deserves a closer look.
Then ask whether either policy includes additional rebuilding protection above that limit, and what conditions apply.
We explain that distinction further in our market value and replacement cost guide.
Put every deductible into dollars
This is one of the first things I’d check.
You may have a standard deductible, a separate wind or hail deductible, and another deductible for an optional coverage.
A percentage can look small on paper. The dollar amount makes it easier to understand.
For example, if a policy calculates its wind and hail deductible as 2% of a $400,000 dwelling limit, that deductible is $8,000.
That’s the amount we should be discussing. Check the quote and policy to confirm which insured value the percentage applies to.
The question I’d ask is simple: Would you be comfortable paying that amount after a covered loss?
Let’s compare a hypothetical pair of quotes
These numbers are for illustration. They aren’t actual quotes or a description of a particular insurance product.
| Detail | Quote A | Quote B |
|---|---|---|
| Annual premium | $1,800 | $1,500 |
| Dwelling limit | $400,000 | $400,000 |
| Standard deductible | $1,000 | $2,500 |
| Wind/hail deductible | $1,000 | 2% of the dwelling limit: $8,000 |
| Water backup limit | $10,000 | $25,000 |
| Water backup deductible | $1,000 | $500 |
Quote B saves $300 a year. It also provides a higher water backup limit and a lower deductible for that coverage.
But its standard deductible is higher, and its wind and hail deductible is $7,000 more than Quote A’s.
Would I automatically rule out Quote B? No.
Someone with money set aside might be comfortable with those deductibles. Someone who would struggle to come up with $8,000 might prefer another option.
I’d also ask whether we can adjust either quote. We may be able to change a deductible or coverage option and see how that affects the price.
You don’t have to assume the first version of a quote is the only version available.
Check how roof damage would be settled
Two quotes can show the same dwelling limit and still treat roof damage differently.
Ask whether the roof has replacement cost coverage, actual cash value coverage or a payment schedule. Find out whether its age affects the settlement and whether different terms apply to wind and hail.
Then look at the deductible alongside those terms.
You want to understand what you could be responsible for after a covered roof loss, rather than stopping at the amount listed for the house.
Our roof coverage guide takes a closer look at those differences.
Compare the water coverage separately
“Water damage” can describe several different problems.
A burst pipe, a sewer backup and flooding aren’t interchangeable. Homeowners policies generally cover certain sudden and accidental water losses, while sewer or drain backup may require optional coverage. Flood insurance is separate.
For water backup, check:
- Whether it’s included.
- The coverage limit.
- Its deductible.
- The losses the endorsement covers.
If you have a finished basement, tell us what’s down there. Flooring, furniture and other belongings are worth discussing when choosing a limit.
See what else is included
Ask about optional coverage, such as service line protection or additional building code coverage. Availability and terms vary.
Find out whether it’s included in the quoted premium or shown as an option that costs extra.
I’d also compare personal property coverage, liability limits and coverage for additional living expenses. Jewelry, collectibles or other valuable items may need their own discussion.
A useful comparison should show what each policy includes and where you would want something adjusted.
Who will you call when you need help?
So far, we’ve compared the policies. I’d also compare the help that comes with them.
Suppose one quote is purchased online, and the other comes from an agent who knows you. The coverage looks similar, but the agent’s quote costs a little more.
Is that personal relationship worth the difference?
For some people, handling everything online works well. They’re comfortable researching coverage, making changes and contacting whoever is available when a question comes up.
Other people want someone they know to call.
Maybe you’re adding a teenage driver, buying a home or trying to understand a letter from the insurance company. If a problem comes up, you want someone familiar with your situation who can help you figure out the next step.
That’s part of what I want you to consider when comparing our quote.
Tiffani and I are here to answer questions, help with policy changes and explain where to go when something happens. We can’t promise how a claim will be decided, but we can help you understand the process and follow up on questions.
Ask each company how that works. Will you have a regular contact? Can you reach the same team again? Who helps when something needs attention?
Then look at the actual price difference. If it’s $120 a year, that’s $10 a month. Would having a familiar team to call be worth that to you?
There isn’t one answer for everyone. But service deserves a place in the comparison.
Look at the household’s total cost
If a quote includes a home and auto discount, compare both policies together.
Ask whether the quoted price assumes you’ll move your auto insurance, enroll in a payment plan or meet another discount requirement.
The home premium by itself may not tell you what the change would cost your household.
Let’s walk through the quotes together
You don’t need to become an insurance expert to make a good choice. You need to understand the differences that could matter to you.
Bring your current policy and the quote you’re considering. Dan or Tiffani can help you compare the limits, deductibles and coverage terms, then discuss the available options.
Visit our home insurance page to share your current coverage through Canopy Connect, call (937) 550-9596, or book a conversation.
If the lower premium makes sense for your situation, great. If it comes with a deductible you couldn’t comfortably handle, or a service arrangement that doesn’t fit how you want to work, that matters too.
The goal is to find coverage you understand, at a price you’re comfortable paying, with help you can count on when you need it.
Coverage and claim payments depend on the policy’s terms, limits, deductibles and exclusions. Quotes are subject to underwriting, and availability varies.