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Home › Pay › Common problems › Homeowners insurance
Insurance

Homeowners insurance

Homeowners insurance protects one of the biggest things you own, but the details can be hard to follow. Many people only learn about large storm deductibles, low coverage limits, or missing flood coverage after a loss. This page explains the common surprises, where to get free help, and what to check before you renew or switch.

Why premiums are so high, and how to check insurer profits and rate filings: Insurance costs explained →

Common problems to watch for

  • Wind or hurricane deductibles set as a percentage of the home's insured value, which can be far larger than a flat deductible
  • Coverage limits that do not match today's cost to rebuild the house
  • Policies that renew automatically at a higher price with little notice beyond the bill
  • Assuming flood damage is covered when standard homeowners policies generally exclude it
  • Paying actual cash value for a roof or belongings, which subtracts for age and wear
  • Coverage the lender buys for you if your policy lapses, which often costs more and protects mainly the lender

Had one of these happen? Telling others what you were charged helps them avoid it.

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Free and low-cost alternatives

About this listHomeowners insurance has no free version. These free resources help you check, compare, or lower the cost of coverage; they do not replace it.
Your state insurance departmentEvery state has one. It answers consumer questions, confirms whether a company or agent is licensed, and takes complaints. Find yours through the NAIC's state map at content.naic.org.
Free CLUE report from LexisNexisUnder the Fair Credit Reporting Act you can get a free copy of your CLUE claims history for home and auto. Check it for errors before you shop and dispute mistakes.
Quotes through an independent agentAn independent agent can compare several insurers at once. This helps you shop; it does not replace coverage. Ask how the agent is paid.
FORTIFIED roof standard (fortifiedhome.org)A voluntary building standard from the nonprofit IBHS. A certified FORTIFIED roof may earn an insurance discount in some states; ask your insurer before you re-roof.

Availability depends on your device and model. AblePro has no relationship with any company named here.

What fair pricing looks like

A fair policy has a price you can compare against other quotes for the same limits and deductibles. Check that the coverage matches rebuild cost and that any storm deductible is one you could actually pay.

Before you pay

  • Read the declarations page for dwelling limit, deductibles, and any separate wind or hail deductible
  • Ask whether the dwelling limit reflects current rebuild cost, not the home's sale price
  • Ask if belongings and roof are paid at replacement cost or actual cash value
  • Get at least two or three quotes with the same coverage so prices are comparable
  • Ask about discounts for roof upgrades, alarms, or bundling with auto

How to cancel

  1. Have a new policy in place and confirmed in writing before cancelling the old one, so there is no gap
  2. If your premium is paid through a mortgage escrow account, tell your lender about the new policy
  3. Ask the old insurer for written confirmation of the cancellation date
  4. Ask how any refund of unused premium is figured; rules vary by state
  5. If you have trouble, contact your state insurance department

Step-by-step cancel guide for iPhone, Android and PayPal →

Common questions

Why did my homeowners premium go up when I never filed a claim?

Prices can rise for reasons that have nothing to do with you, such as higher building costs or more storm losses in your area. Ask your agent what changed, request quotes from other insurers for the same coverage, and contact your state insurance department if you think something is wrong.

What is a percentage deductible?

Instead of a flat amount, some policies set the wind, hail, or hurricane deductible as a percentage of the home's insured value. On a higher-value home, even a small percentage can mean thousands out of pocket. Look for it on your declarations page and ask your agent to show you the dollar amount.

Does homeowners insurance cover flooding?

Standard homeowners policies generally do not cover flood damage. Flood coverage is usually a separate policy through the National Flood Insurance Program or a private insurer. FloodSmart.gov explains the options. Policies typically have a waiting period before they take effect, so do not wait for a storm forecast to buy.

General consumer information, not legal or financial advice. Reports reflect the experiences and opinions of their writers, not AblePro, Inc. We check reports against our posting rules but do not verify them.