Homeowners insurance provides protection against calamities such as fire, lightning, hurricane, hail, theft, explosion, vandalism, riot or civil commotion, vehicles, smoke, theft, volcanic eruption, falling objects, heavy snowfall and other disasters covered in the policy.

Every standard homeowners policy would have three basic options: actual cash value, replacement cost, and guaranteed or extended replacement cost. There are different kinds of polices, some of them being the H0-1 (Limited coverage policy), HO-2 (basic policy), HO-3 (special policy, which is also the most popular), HO-8 (Older home), HO-4 (renter policy), HO-6 (condo/co-op). Another classification is the named vs. all-risk policies.

Homeowners insurance rates vary from country to country and state to state. The rate depends on the kind of risk the house has. If it is located in a place which is likely to be affected frequently by floods, earthquakes, hurricanes or other natural disasters, the rate would be higher. The rates would also depend on the insurer. Senior people would attract lower rates since they stay in the house and can detect any calamities such as fire or smoke sooner. Some companies also discriminate on the basis of the breed of dog in the house. Having mold in the house can also lead to higher insurance rates and premiums. Other things that can increase the rate are swimming pools, trampolines, guns, past claims, past bankruptcy, or any hazardous materials in the house.

The best way to shop for homeowners insurance is to get quotes from different insurance companies. There are several insurance companies that specialize in homeowners insurance. A licensed insurance agent would be able to help you find the best policy at the ideal rate. Homeowners insurance quotes can also be obtained online, for free. The insurer just has to fill in some basic information about the home such as the year purchased, purchase price, approximate interior footage, location from a fire station/fire hydrant, location of the house, and so on, and information about the current insurance policy (if any, for comparing) such as past claims. There are brokerage companies who can get you quotes from multiple companies, allowing the insurer to compare the rates and options.