RamseyTrusted pros are interviewed, vetted and coached to make sure they’re market experts who have your best interest at heart.
Your pro will shop the insurance market and compare P&C quotes, discounts and bundling deals for you, at no extra cost—so you can sit back, relax, and know you’re getting the right coverage.
RamseyTrusted pros make sure you have all the coverage you need and nothing you don’t. You’ll get the right insurance that could save you BIG TIME down the road.
Are you an insurance pro looking to work with our fans? Click here.
Choose the insurance you’re looking for and match with a RamseyTrusted insurance pro.
Your pro will give you a call within 24 hours and ask for basic information.
They’ll shop P&C insurance quotes from multiple carriers to find you the right policy at the best price.
“Five years ago, a Ramsey ELP was only going to save me $120 for the year on my home and car. I checked again recently, and it was saving me $900 a year. This helps me a lot. I’m a single dad who works full time and cares for my special needs adult daughter.”
Brian H.
“This past year, we purchased our new home! We used a Ramsey home insurance pro. I trust them to find what we need and get us the best deal. Everything was in place, and I really didn’t have to do a thing!”
Laurie F.
“What an absolutely wonderful experience to work with a Ramsey insurance ELP and eventually move my business to them, thanks to a net savings of about $600 a year on home and auto.”
Scott M.
“I worked with a Ramsey home insurance pro and loved it. He is a wonderful person who is able to make you feel like family! Great experience.”
Lois K.
Home and auto insurance can be confusing. Sign up to get Ramsey's no-nonsense advice, including free access to Dave's video from Financial Peace University (normally $80). Plus, guides and resources sent right to your inbox!
Your insurance is worth getting right, but it can be tough to know who to trust. That’s why we created RamseyTrusted. Only insurance pros who are the very best at what they do earn the RamseyTrusted shield, and once they’re there, we coach them to make sure they serve you well and always have your best interest at heart. These pros have your back and they’ll do whatever it takes to help you protect what matters most.
Independent. They can compare home insurance quotes from multiple local and national insurers to find you the best coverage.
They’re reliable, so they’ll be there when you need them. And they’ve got the heart of a teacher, so they’ll actually help you understand your home insurance.
Nope! You just pay your insurance premium like normal—no catch, no extra costs.
Yes! In fact, most companies will give you a free home insurance quote—so you should never have to pay for one.
The short answer is, it depends. Your home’s value and location determine the amount, type and price of coverage you need. High-value or high-risk homes usually cost more to insure. Find out how to tally up the amount of home insurance you need.
And if your home is extremely valuable or your net worth is at least half a million dollars, we recommend a minimum of $1 million in umbrella insurance for extra protection.
Again, it depends. (We know, we know.) Each state has different risks—like earthquakes and wildfires in California, hurricanes in Florida and sinkholes in Tennessee.
That’s why working with a local pro is so important. They’ll know your state’s laws and whether you need special coverage based on your home’s exact location. They’ll help you tailor your coverage to protect your house and fit your financial plan.
Absolutely! You need to insure any home you own. You may be able to get discounts on vacation or seasonal homes. If you’re renting out your house to other people, you’ll need different types of home insurance: landlord insurance for long-term tenants or commercial insurance if you’re housing short-term guests as part of a business, like using your home as an Airbnb.
Congratulations! If you’re a first-time home buyer, you need to insure your home before you buy. Building a new house? You still need homeowners insurance. (You may also want to look into builders risk insurance for additional protection while your home is under construction.)
Your landlord is responsible for insuring the house itself. But it’s your job to get renters insurance to cover the cost of replacing your belongings if they’re damaged or stolen while you’re renting. A Ramsey ELP can help you find the right policy: Just fill out the form at the top of this page, match with a pro, and tell them you need renters insurance.
Have you ever wondered, What’s in my homeowners insurance policy? How much do I actually need? and What am I paying for again? Yeah, we thought so. We’ll break it down so you can find your home insurance sweet spot.
George Kamel
With so many types of insurance to choose from, it's hard to know what you need and what you don't. So, let’s go over the eight types of insurance you can’t go without.
Ramsey Solutions
Your home is your biggest investment. Yet many Americans are underinsured when it comes to their homeowners insurance. Check out our homeowners insurance guide to get educated about what you need.
George Kamel
Home insurance is one of the best tools you have to protect what is likely the biggest investment of your life. Think about it: If a tornado decided to play duck-duck-goose in your neighborhood and your house was the goose, you would pretty much have to start all over.
Just consider how much your house is worth, how much money you have tied up in it, how much it would cost to rebuild it. And that’s just the beginning. Where would you live after the dust settled over your home sweet pile of toothpicks? What about all the stuff you’ll have to replace, like your gorgeous $6,000 sectional or your underwear dangling from a tree in the county over?
A good homeowners insurance policy will protect your investment with coverage to rebuild your home, replace your belongings and more.
Wow, someone will pay for everything if my home gets destroyed? Awesome. Well, yes. But it’s actually not everything.
The most popular type of home insurance policy—often called standard coverage or HO-3—has four types of coverages. Take a look:
This would be your house, and the dwelling coverage of your home insurance will cover the cost to rebuild it. Your coverage amount isn’t based on the real estate market value, but rather the cost to replace your house based on construction prices, including labor and materials.
This includes things like freestanding garages and sheds. Most policies will add up to 10% of your dwelling coverage amount to go toward rebuilding unattached garages and such.
Some homeowners have what the insurance industry calls an accessory dwelling unit (ADU)—better known as an in-law suite. Coverage under your home insurance policy can depend on whether the ADU is attached to your home (like a renovated attic space) or is separate. Either way, make sure you have insurance to cover the cost to rebuild your ADU—even if it means adding additional coverage under your homeowners policy.
This would include (just about) all the stuff you own—including that extra ugly dish set you got as a wedding present but definitely wasn’t on your registry. It can also include any watercraft you own worth up to $1,000 if it’s stolen from your property.
Typically, the insurance company will pay out up to 50% of your dwelling coverage to replace your personal property. And they’ll base that dollar value on one of two things: actual cash value (ACV) or replacement cost (RCV). ACV gives you the market value for your stuff the day it was damaged or destroyed (usually much less than what you paid for it—a used fridge costs less than a brand-new one, after all). RCV gives you the amount you’d need to replace the item with a new one.
To get the most out of your personal property coverage, you’ll need to make an inventory of all your belongings. It might sound boring, but you’ve got plenty of ways to do this, so get creative! Take pictures (including serial numbers or brands where applicable), video catalog your stuff, or maybe even try one of the apps made for this kind of thing. Keeping receipts, especially on big ticket items, can be helpful when it’s time to file a claim. And don’t forget to update your inventory regularly.
Your neighbor Gina walks into your yard to retrieve her wayward wiener dog and slips on the mossy bit of your driveway. She watches too many cheezy lawyer commercials and decides to call 1-800-I FELL.
This kind of thing really happens! Or maybe a kid falls out of your treehouse or your cousin’s friend falls down your stairs. (Lots of falling happening all over.) Liability will pick up the cost if someone decides to sue you because they got hurt on your property.
Like we mentioned above, standard policies (or for all the cool kids, HO-3s) are the most popular type of homeowners policies. Here’s a quick rundown of what you can usually expect with this kind of policy:
Already have homeowners insurance, but not sure how much you have? Check out your insurance declaration page. This is a really helpful summary from your insurance carrier of exactly what you’re paying for.
| Dwelling | Your house structure |
| Other Structures | Any other structures, like an unattached garage or shed |
| Personal Property | Basically everything you own inside your house and other structures |
| Liability | Any money you might have to pay if someone is injured on your property and sues you |
Insurance companies also call the shots about the type of damage they’ll cover. Check out the list below to see what incidents and disasters they’re willing to pay out for—some of them may surprise you.
As you can see, it’s a decent list. If you find yourself with grapefruit-sized holes in your roof from a hailstorm, you don’t need to worry about paying for a new roof. But there are other calamities you won’t be able to count on your standard policy to cover.
While home insurance will cover damage from many disasters, sadly it will not cover everything.
Incidents Standard Coverage Will Not Pay For
The exclusions clause of any policy will tell you the whole list of events your policy won’t cover. Always look at your policy to see what you’re still on the hook for.
If you live in a place like California that’s earthquake prone or next to the Mississippi River that floods regularly, you’ll need to get special insurance to cover damage from those kinds of events. Earthquake, sinkhole and flood insurance are all available separately (unless you live in Florida or Tennessee where companies are mandated to provide sinkhole insurance).
Earlier we said home insurance covers personal property. But there are some things you might think fit in that category that it doesn’t cover.
Home insurance won’t cover your car if it’s damaged or stolen or your expensive boat or watercraft. It also won’t cover your high-value items, like jewelry, fine art and collectibles (that are actually worth something—so it will cover your Beanie Babies, but not your rare comic book collection).
If you own anything with a big price tag, like furs, firearms or the crown jewels, you may want to look into what’s called scheduling, which means you insure these items individually for specific amounts.
Not all policies are the same, of course. You can choose different types of coverage that change the way the insurance companies pay out for damage. Those options can also affect your premiums—the amount you pay for your homeowners insurance.
Actual Cash Value
We talked about this in the personal property section. It sounds like what it is. Basically, ACV factors in depreciation. When Larry’s house gets burnt to a crisp because he tried to deep fry the Thanksgiving turkey inside, the insurance company will give him the current market value of his stuff (think about how much a used TV costs versus a new one and you’ll get the picture). Most homeowners policies include replacement cost coverage for your dwelling and actual cash value (ACV) coverage for your personal property.
Replacement Cost
Definitely a step above ACV, replacement cost coverage will give you the money to replace your home and belongings at whatever the current cost is—up to the policy limit.
Extended Replacement Cost
A variation on replacement cost coverage, extended replacement cost coverage pays to replace your home up to the policy limit plus an extra percentage of the policy limit in case it turns out to cost more than you thought.
Check out this example: Michelle bought a $350,000 extended replacement cost policy to cover her $350,000 ranch-style house several years ago. Squirrels nesting in her walls chew up the electrical and her house burns down.
Due to a worker shortage, construction costs recently skyrocketed, and now it will cost $490,000 to rebuild her sweet ranch. But she has an extended replacement cost policy which will add 40% of the original $350,000 limit on top of her payout, so she’ll get $490,000 total. Michelle’s covered!
While this kind of policy is more expensive, it could be helpful if you live in an area where building costs are rapidly increasing.
Guaranteed Replacement Cost
This is the El Primo of homeowners policies. No depreciation. No limit. If your house and all its contents get destroyed by a falling satellite (or, you know, something else a little less likely), the insurance company will pay. If the rebuild is $100,000, insurance will cover it. If the rebuild is $890,000, insurance will cover it. This is usually what people think of when they imagine home insurance, and in an ideal world it’s what we’d recommend, but this kind of policy is hard to find and very expensive, so if you do find it, make sure it’s worth the extra cost by talking through your options with an independent insurance agent.
There are basically eight different types of home insurance policies, often named HO-1, HO-2, etc., all the way to HO-8. Ranging from low coverage to high coverage to renters coverage and beyond, they also scale in price.
HO-1 and HO-2
Most insurance companies don’t sell HO-1 and HO-2 to single-family homeowners because they’re too basic. So let’s move on and take a look at the popular HO policies.
HO-3
This is the most common type of policy homeowners select. It provides the standard level of coverage for your dwelling and personal property. Your personal property is also protected up to a limit (usually 50% of your dwelling coverage).
HO-4
This is renters insurance. It covers everything the renter owns and offers personal liability coverage in case anyone is injured on the property.
HO-5
These policies offer the highest levels of coverage, like full replacement cost for your personal property and structure.
HO-6
This is condo insurance. It covers your unit’s walls, floors and ceilings plus everything else a typical HO-3 policy covers, like liability and personal property.
HO-7
If you live in a mobile home, modular home or manufactured home you’ll need one of these policies. Coverage usually only applies when your home is not moving. If you get in a crash while you’re moving your mobile home, that’s a different deal.
HO-8
Do you love the Instagram page Cheap Old Houses? Well, if you bought one of those beauties (or an expensive one), you might need one of these policies. Since historic homes often have special building requirements and features that are pricier than your three-bedroom, two-bath cinder-block deals (it’ll cost a pretty penny to replace those Georgian columns), this policy is designed to help with the extra expense. It also provides the other typical coverages like liability and personal property.
In 2021, homeowners paid an average of $1,398 in annual premiums for home insurance.1 But keep in mind, individual costs can vary a lot because so many factors go into the price.
The actual cost of your home insurance will depend on things like your deductible, size of the house and the kind of coverage you want.
Where you live also makes a difference. You’ll pay a higher premium if you live in tornado alley (Oklahoma has the highest home insurance rates in the U.S.). But if you don’t mind the sky-high cost of living in Hawaii, you can save some dough on home insurance there because they have the cheapest average.
Construction costs will also impact your insurance rates or quote. And that price tag varies by region. While home insurance companies can calculate an approximate replacement cost for you, it’s a good idea to verify their estimate with a real quote from a professional contractor.
Your insurance quotes will also come in lower if you increase your deductible. A higher deductible means less risk for the insurance company. But don’t choose a higher deductible than you can afford to pay just to save on premiums.
| Factor | Rate |
| Low Deductible |
 |
| High Deductible |
 |
| Small House |
|
| Large House |
|
| Area with high crime |
|
| Area with infrequent natural disasters |
|
| Actual cash value (ACV) policy with basic coverage |
|
| Replacement cost (RCV) policy |
|
Your claim history directly impacts your rate as well. If you have a record of filing lots of claims, insurance companies will give you a higher quote because they think you’re likely to file a lot of claims with them as well—and that’s a higher risk for them.
Ramsey pro tip: Don’t file a claim for small stuff you can cover with your emergency fund.
Whether you have actual cash value (ACV) or replacement cost (RCV) coverage will also change your rate. ACV coverage is cheaper than replacement cost because it costs insurance companies less. That doesn’t mean you want it though. Carefully consider what you can afford and if you can, go for replacement cost coverage—because actually replacing your stuff is kind of the point of insurance.
Every homeowner needs insurance, but nobody wants to pay more than they have to. The good news is you can find ways to save some cash when buying insurance.
This is one of the best ways to save. Many big insurance companies offer discounted rates if you buy multiple types of insurance from them. Talk to your insurance company to see if they offer a better deal if you bundle your home and auto insurance.
Bundling is one way to get a discount, but companies sometimes offer others as well. For example, if your house is new, less than 10 years old, or is constructed with fire resistant or superior materials, you may qualify for certain kinds of discounts on your insurance.
After the loss of a covered item, some companies will reimburse you for upgrading to a more energy efficient version (like a new Energy Star dryer). Others offer a rate discount to owners of homes certified by Energy Star, LEED or the EPA.
This is one of the other big ways to save. By taking on a little more risk with a higher deductible, you could save more in the long run with a lower rate.
Installing upgrades or safety features, like new electrical, smoke detectors, sprinklers, burglar alarms, a moat (just kidding) and other systems, might earn you a discount.
Improving your existing structure by adding storm shutters or a stronger roof could get a percentage knocked off your premium.
Owning your home outright is great just in itself. But there’s a bonus: Your home insurance rates will drop!
Staying with the same insurer could earn you a discount, but make sure you’re actually getting the best deal by still shopping around.
Don’t just go with the first company you get a quote from. Go to several or talk with a RamseyTrusted independent insurance agent to get the best deal around.
To give the most accurate home insurance quote, companies will want to know a bit about your home and history.
They’ll look into things like:
Insurance companies have access to a lot of this already, but some will come directly from you—so you’ll need to have that info handy.
Speaking of having information ready, here’s a list of what you’ll need to get a quote:
The good news is you don’t have to spend hours going around to insurance company after insurance company in the family minivan, having the same conversation over and over. It’s easy to get quotes from the comfort of your sofa online.
Or easier yet, get in touch with a RamseyTrusted independent insurance agent and they can do all the work for you.
Yes. Absolutely. If you’ll get a discount that gives you the best rate, go for gold. This is one of the best ways to save money on insurance.
So, you’ve done the work, gathered your information, and gotten five different quotes—now what? How do you pick one?
Don’t worry—we’ve got you. There are some specific factors of home insurance policies you can compare that will help make one choice stand out as the winner.
When comparing homeowners insurance quotes, it’s important to look at each policy’s coverage limits. How much insurance coverage you get will differ per quote. Don’t go with one just because it’s cheaper up front. You might not get the coverage you need—and that’s a bad deal no matter how cheap the monthly premium is.
You’ll also need to pay attention to your home insurance deductible. Some policies specify different deductibles depending on the type of claim. You may have a reasonable deductible for the general policy but then have completely different (and higher) deductibles for specific kinds of damage.
Not all deductibles are created equal! You may have to pay a separate, higher deductible for things like hail or wind damage.
Make sure you know how you’ll be reimbursed in each policy. A quote for an ACV policy will be cheaper than a replacement cost policy quote. But think about it: You’re buying insurance to make sure you’re not wiped out financially if your biggest investment gets destroyed. An ACV policy will only give you a fraction of the cost to replace all your belongings. You may not be able to afford that.
When you start digging into home insurance, you’ll see all kinds of industry jargon and technical terms. Once you’re familiar with them, though, understanding what you need to buy gets a lot easier.
Policy: This is the term for your personal insurance contract. It outlines all the specifics of what the insurance company will and won’t do in case of a disaster.
Premium: This is what you pay for insurance. The payment can be monthly, quarterly, semiannually or yearly.
Deductible: This is the amount you pay out of pocket toward rebuilding/repairs before insurance kicks in.
Actual Cash Value (ACV): Actual cash value is a type of policy that takes depreciation into account when paying out for stolen or damaged property.
Replacement Cost Value (RCV): RCV is a type of policy that doesn’t take depreciation into account and pays whatever is needed to replace the item (usually up to a total limit).
HO-1, HO-2: These are extremely basic types of home insurance policies. Most companies don’t offer them.
HO-3, HO-5: These are two types of home insurance policies for single-family homes that range from basic standard coverage to high-end coverage.
HO-4: This is an insurance policy for renters.
HO-6: This is an insurance policy for condominiums.
HO-7: This is an insurance policy for mobile homes.
HO-8: This is an insurance policy for historic homes.
Bundle: When you bundle, you buy two or more kinds of insurance (auto and home, for example) from the same company.
Rates: Your insurance rate is the same as your premium. In other words, it’s what you pay for your insurance.
Quote: This is an estimate by an insurance company of what you’ll pay for insurance from them.
Claim: This is a request from a policyholder (you) asking for insurance to cover an incident.
Claim history: This refers to the record of any incidents you’ve asked any insurance agency to cover.
Dwelling: This is your house structure.
Personal property: Your personal property is the contents of your house, including things like your furniture, electronics, clothes and appliances.
Liability: When you’re responsible for paying for damages or medical costs for any person injured on your property, you have a liability. Liability insurance helps cover those costs.
Rider: A rider is an added insurance coverage or feature added to your main policy—usually at an additional cost. In some cases, you can add a sinkhole or hurricane coverage rider to your policy (but sometimes those have to be purchased separately).
Endorsement: This is another word for rider. Riders and endorsements can also be used to cover high-value possessions, like jewelry and art.
Scheduling: This refers to buying extra insurance for high-value items.
Whether you already have insurance, are looking over a quote, or are considering getting a quote, here are some questions you should ask yourself about the kind of homeowners insurance policy you need:
Hint: The answer may be no if you have an ACV policy and don’t have the cash saved to make up the difference.
The answer may be no if you haven’t increased your dwelling coverage in a while and construction costs have risen.
The answer may be no if insurance and your emergency fund combined don’t provide enough to cover the extra expense of living elsewhere while your home is being rebuilt.
Raising your deductible can be a great way to save money on premiums. But if you can’t afford to pay the bigger lump sum out of your emergency fund, that’s a no-go and you should choose a lower deductible.
Hint: If you own one of those houses on stilts on the coast of Florida and you don’t own hurricane insurance, you need to get it. Insurance won’t cover you if Hurricane Murphy blows it over.
If you choose to live in a natural disaster danger zone, make sure you buy insurance to cover that risk.
A collectible car or a separate granny flat are two examples of property that wouldn’t be covered by a standard homeowners policy. Make sure everything you own is covered—or you can afford to eat the loss.
Working with an independent agent is a great way to save money and time. Because they don’t work for any of the insurance companies, they’re free to offer you the best options for you. You can get a list of independent agents in your area who have been vetted by RamseyTrusted and are part of our Endorsed Local Providers (ELP) program here.