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 honestly.
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.
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 Insurance 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 Insurance 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.