Home insurance
Home insurance, before the fine print bites.
Here's the deal with a homeowners policy: the parts that decide whether you're actually protected — your dwelling limit, replacement cost, the exclusions — are the parts nobody walks you through until something's already gone wrong. So let's walk through them now. We're not a licensed agent, we sell nothing, and this is just the coverage laid out in plain English so you can compare it apples to apples.
What a homeowners policy is made of
A standard homeowners policy is a bundle of six coverages, usually labeled A through F. Each has its own limit, and the limits interact — which is exactly where people get caught short.
Dwelling (Coverage A)
The structure itself. This limit should track what it would cost to rebuild your home today — replacement cost — not what it would sell for. Get this one wrong and everything downstream is short.
Other structures (B)
Detached garage, fence, shed. Usually set as a percentage of your dwelling limit; check whether that percentage actually covers what you have.
Personal property (C)
Your stuff. Note whether it's settled at replacement cost or actual cash value, and watch the sub-limits on jewelry, electronics, and cash.
Loss of use (D)
Pays your extra living costs if a covered loss makes the home unlivable — a hotel, meals, a rental — while it's repaired.
Liability (E)
Covers you if someone is injured on your property or you damage someone else's. This is the piece most people under-buy relative to what a lawsuit can cost.
Medical payments (F)
Small, no-fault coverage for a guest's injuries, separate from a liability claim.
| Coverage | What it protects | Watch for |
|---|---|---|
| A — Dwelling | The structure itself — should track full rebuild cost, not resale value. | Get this one wrong and every limit below it comes up short too. |
| B — Other structures | Detached garage, fence, shed — structures apart from the home itself. | Usually a % of your dwelling limit; confirm it actually covers what you have. |
| C — Personal property | Your belongings — furniture, electronics, clothing. | Replacement cost vs. actual cash value, plus sub-limits on jewelry, electronics, cash. |
| D — Loss of use | Extra living costs (hotel, meals, a rental) if a loss makes the home unlivable. | Runs only while the home is being repaired — it's temporary, not open-ended. |
| E — Liability | Injuries to others on your property, or damage you cause to someone else's. | The piece most people under-buy relative to what a lawsuit can cost. |
| F — Medical payments | A guest's minor injuries, regardless of fault. | Small and separate from your liability claim — don't confuse the two. |
The one that matters most
Insure to rebuild, not to resell.
The single most expensive mistake in home insurance is insuring your house for its market value instead of its replacement cost. Market value includes the land and reflects the resale market. Replacement cost is what a builder would charge to rebuild the structure at today's prices. After a total loss you're rebuilding — so replacement cost is the number that has to be right. When construction costs run hot, a policy that looked fine last year can quietly fall behind.
The exclusions that surprise people
"I thought I was covered" is almost always about an exclusion nobody flagged. The usual suspects:
Flood
Excluded from standard policies. Covered separately — often through the NFIP or a private flood policy.
Earthquake
Excluded. Covered by a separate policy or endorsement, or a state program where one exists.
Maintenance & wear
Insurance is for sudden, accidental loss — not a worn-out roof, mold from a slow leak, or deferred upkeep.
Sewer/drain backup
Frequently excluded unless you add an endorsement. A common and costly gap.
By the numbers
What the public data says
- $1,569 in 2022. The Insurance Information Institute, citing a May 2025 NAIC report, puts the average homeowners premium at $1,569 in 2022 — an 11.2% increase over 2021.
- Up ~34% since 2018. Realtor.com's analysis of S&P Global Market Intelligence rate-filing data for the 10 largest homeowners insurers in each state found costs rose roughly 34% nationally from 2018 to 2023 (published May 2024).
These describe the market on the dates cited. They are not a quote, and costs vary widely by state, rebuild cost, and risk.
How to compare, apples to apples
- — Hold the dwelling limit to true replacement cost across every option before you look at price.
- — Confirm replacement cost vs. ACV on both the structure and your personal property.
- — Read the exclusions and deductibles — including any separate wind/hail or hurricane deductible.
- — Check the carrier's claims and complaint record with your state department of insurance.
Local factors
What shapes your premium where you live
Home insurance is priced on local risk — hurricane, wildfire, hail, and flood exposure, property values, and rebuild costs all move the number. See the sourced local factors and state-average context for your metro.
The disclaimer, stated plainly
ClearValue Insure is not a licensed insurance agent, broker, producer, or carrier. This page is educational only — nothing here is personalized insurance advice, and it is not an offer to sell or a recommendation of any specific policy. Coverage, eligibility, and pricing are set solely by the insurer. Figures describe the market on the dates cited; they are not a quote for you.
Frequently asked
What's the difference between replacement cost and market value?
Market value is what your house would sell for — land included. Replacement cost is what it would take to rebuild the structure at today's construction prices. Home insurance is about rebuilding, not reselling, so replacement cost is the number that matters. Insuring to market value can leave you badly short if construction costs have run ahead of it.
Why has my home insurance gone up so much?
It's not just you. Realtor.com's analysis of S&P Global Market Intelligence rate-filing data found homeowners insurance costs rose about 34% nationally from 2018 to 2023, and the Insurance Information Institute, citing NAIC data, reports premiums kept climbing after that — up 11.2% in 2022 alone. Rebuild costs, severe-weather losses, and higher reinsurance costs are the main forces — and they hit whole regions, not individual policyholders.
Does ClearValue Insure sell homeowners insurance?
No. We're not a licensed agent, broker, or carrier, and we don't sell, quote, or bind policies. We explain how a homeowners policy is built and how to compare options against a published standard, so you know what you're looking at before you talk to someone who does sell it.
Does homeowners insurance cover floods and earthquakes?
Usually not. Standard homeowners policies exclude flood and earthquake — those are separate policies (flood coverage often through the NFIP, earthquake through a state program or endorsement). This is one of the most common and most expensive surprises at claim time, so check your exclusions before you assume you're covered.
What is an ACV vs. replacement-cost settlement?
Actual cash value (ACV) pays what your damaged property is worth today — after depreciation. Replacement cost pays to replace it new, up to your limits. A roof settled at ACV can leave a large gap you cover yourself. Which one applies depends on your policy and sometimes on the specific item, so it's worth confirming before a loss, not after.
If my premium jumps, is switching insurers worth it?
It's the top reason homeowners give for leaving. J.D. Power's 2025 U.S. Home Insurance Study (based on 14,511 homeowner and renter interviews fielded July 2024 through May 2025, released September 16, 2025) found 47% of homeowners insurance customers had an insurer-initiated rate increase in the past year — the highest share in more than a decade — and among customers who say they're unlikely to renew, 43% point to that price hike as the reason. A jump doesn't automatically mean you're overpaying relative to the market, but it's a reasonable trigger to check.
What is a FAIR Plan, and why do I keep hearing about it?
A FAIR Plan is a state-created "insurer of last resort" for homes that private carriers won't cover directly — typically high wildfire, hurricane, or other catastrophe-exposed properties. It's grown fast: the Insurance Information Institute, citing Property Insurance Plans Service Office (PIPSO) data through fiscal year 2024, reports FAIR Plan policies nationwide rose from 1,779,866 in 2015 to 2,684,925 in 2024 — roughly 51% growth over nine years, concentrated in the highest-risk zip codes. If a standard carrier won't write your home, a FAIR Plan is usually the fallback, generally at a narrower coverage and higher cost than a standard policy.
Is it worth shopping around for home insurance?
Shopping activity has actually been rising. TransUnion's Insurance Personal Lines Trends and Perspectives Report (Q4 2025 data, published February 10, 2026) found property insurance shopping rose 5% in the fourth quarter of 2025 versus the same quarter in 2024 — notable because Q4 is normally a seasonal low point for shopping. More people comparing options doesn't guarantee a better price for any one household, but it does mean fewer homeowners are simply letting a renewal go through unchecked.