Comparing the best home insurance companies

When buying a homeowners insurance policy, you will want to consider several components of the company, including their average annual premiums, available coverages, ability to handle claims and customer satisfaction.

Once you've got your personal details and a good picture of your coverage needs, you're ready to start requesting quotes from insurance companies. We recommend starting with the providers that we've identified as the best in terms of service quality, benefits and affordability. If you'd like to know what the baseline cost of coverage is, we also keep tabs on the average cost of homeowners insurance.

To understand why rate increases are especially high in certain states, we look to a measure called the loss ratio. The annual loss ratio of an insurance company is equal to the claims paid out divided by the premiums collected. This makes loss ratio an inverse measure of an insurer's profitability. A loss ratio over 100% means that an insurer paid out more than it earned.

How to control your homeowners insurance costs

If your home insurer raises your rates year after year, there are plenty of competitors willing to offer you a quote to switch providers. So long as you aren't compromising on the amount and quality of coverage, switching insurers is one of the most effective ways to control your costs. While you may miss out on your old insurer's loyalty discount, providers often offer discounts for new customers too.

If you have a bundled policy that you want to keep, another option is to raise your home insurance deductible. While this means you're on the hook for a bigger share of the upfront costs in any claim situation, accepting a higher deductible should lead directly to lower premiums.

How to compare homeowners insurance quotes

Your home is one of the biggest investments you'll ever make. As insurance geeks, we've pinpointed the key factors that you should consider when choosing an insurer. These days, many home insurance companies can quickly provide you with online quotes. However, the rates you see will only be as accurate as the information you submit in the application process. If you want to see home insurance quotes that you can rely on, you'll need to make sure of the details. Each of them may have an impact on your quotes.