Home Insurance Methodology and Assumptions

MoneyGeek provides financial resources to help you manage your money smarter. With reliable and relevant homeowners insurance data, you can feel confident in choosing the right coverage for your home.

As a trusted resource, MoneyGeek delivers valuable financial material, reviews and recommendations to meet the needs of homeowners choosing the right insurance coverage for their home.

Reviews and Rankings Methodology

To rank the top home insurance companies across different categories, MoneyGeek calculated a unique score for each insurance company, where premium data was available in more than 35 states on average.

MoneyGeek ranked companies based on nationally recognized data from leading consumer reporting agencies, including J.D. Power for customer service, AM Best for financial stability and Quadrant Information Services for affordability. Each factor was rated on a scale of 1-5 and then weighted based on relevancy, with an emphasis on affordability. These factors were then calculated to create a comprehensive score out of 100. Depending on the category, pricing information was adjusted based on the persona or state being analyzed.

Pricing and Average Costs

MoneyGeek sourced pricing data from Quadrant Information Services to calculate the average cost of homeowners insurance on a state and national level. Premiums were calculated based on additional factors, such as home value, deductible, liability limit, personal property coverage amount, construction year and personal credit score.

Seven dwelling coverage levels were used for this analysis: $100,000, $250,000, $500,000, $750,000, $1 million, $2 million and $3 million. MoneyGeek chose the dwelling coverage that best aligned with the median home value in each state and the District of Columbia.

A standard home profile was chosen to provide the most reliable and relevant data to develop a thorough analysis of home insurance. This standard home consist of these attributes:

  • Construction year of 2000
  • Frame construction type
  • Composition roof
  • 3-mile radius from the fire department
  • An assumed value of other structures on the property is 10% of the dwelling coverage
  • The personal property coverage is set at 40% of the dwelling coverage
  • The liability limit is set to $100,000
  • The deductible is set at $1,000

Disclaimer

MoneyGeek’s home insurance reviews and pricing information are designed to provide a general overview of homeowners insurance. This information guides and directs readers to make educated decisions based on their own circumstances and needs. It is not intended to be binding documentation. To secure the best rates, customer service and coverages, gather several homeowners insurance quotes from different providers to make the most informed decision.